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V2977-15 8 October 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

The special regime for partial demergers may be applied if business lines with economic autonomy are transferred

A company inquires whether the demerger of its electricity marketing activity into a new company may qualify for the special regime of the Corporate Income Tax Act. The DGT responds that it is possible if the segregated assets and those remaining constitute business lines with autonomous organization and management, and if valid economic reasons exist.

The question raised

Whether the described operation may qualify for the special tax regime under Chapter VII of Title VII of Corporate Income Tax Law 27/2014, of November 27.

The DGT's ruling

To qualify for the special regime for partial demergers, the segregated assets must constitute an autonomous economic unit and allow for the development of an economic activity in the acquiring entity. Likewise, the transferring entity must retain in its assets at least one other business line that is also an economic activity with differentiated management and organization. Finally, the operation must be carried out for valid economic reasons and not with the primary objective of obtaining a tax advantage.

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