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V2980-14 4 November 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Hotel contribution may qualify for special regime if it constitutes an autonomous branch of activity

A query was raised regarding whether the non-monetary contribution of a hotel to another entity may qualify for the special Corporate Tax regime. The DGT indicates that for this to apply, the contributed assets must constitute an economic unit capable of operating independently and must be supported by valid economic reasons.

The question raised

Application of the special regime of Chapter VIII of Title VII of the recast text of the Corporate Income Tax Law to the non-monetary contribution of the hotel as a business line, carried out by the consulting entity in favor of B. And whether the alleged reasons are considered economically valid for these purposes.

The DGT's ruling

To apply the special regime for non-monetary contributions of business lines, the transferred assets must constitute an autonomous economic unit that allows for the development of an economic activity within the acquiring company. Likewise, the activity must have previously existed in the transferring company to allow for the identification of the asset pool. The transaction may not qualify for the regime if its primary objective is tax fraud or evasion, requiring valid economic reasons such as the restructuring or rationalization of activities.

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