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V2953-21 19 November 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

Partial demergers cannot qualify for special tax regime if segregated assets do not constitute a line of business

A jewellery company that also owns rental properties has enquired whether it can carry out a partial demerger of said properties under the special Corporate Tax regime. The Directorate-General for Taxes (DGT) ruled that, as there was no prior separate organisation and management for these properties, they do not constitute a line of business and therefore do not qualify for the special regime.

The question raised

Whether the described operations may benefit from the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

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