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V3444-15 11 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

The special regime for demergers may be applied if lines of business are transferred for valid economic reasons

The inquiry asks whether a partial demerger may qualify for the special regime under the Corporate Income Tax Act and whether the economic reasons presented are valid. The DGT responds that it is possible if lines of business constituting autonomous economic units are transferred and the operation does not have the primary purpose of fraud or tax advantage.

The question raised

Whether the proposed operation could qualify for the special tax regime regulated in Chapter VII of Title VII of the Corporate Income Tax Act, and whether the economic reasons can be considered valid for the purposes of applying the aforementioned special regime.

The DGT's ruling

To qualify for the special regime for demergers, the operation must comply with the requirements of Article 76.2 of the Corporate Income Tax Act and be carried out within the commercial sphere pursuant to Law 3/2009. The segregated assets must constitute a line of business, understood as an autonomous economic unit capable of operating by its own means. Furthermore, the operation must not have the primary objective of fraud or tax evasion, and must be based on valid economic reasons such as the restructuring or rationalization of activities.

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