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V3660-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total no proporcional

To apply the special regime for non-proportional total demergers, the assets must constitute business lines

The taxpayer asks whether a non-proportional total demerger of its assets may qualify for the special Corporate Income Tax regime and whether its motives are economic. The DGT indicates that for it to be tax-valid, the segregated assets must constitute autonomous business lines with a differentiated organization.

The question raised

Question posed: Whether the aforementioned operation may qualify for the special tax regime under Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether the reasons provided may be considered valid economic motives for the purposes of the provisions of article 89.2 of this law.

The DGT's ruling

In a non-proportional total demerger, the demerged assets must constitute business lines, understood as sets of elements capable of functioning by their own means. This requires the existence of a differentiated organization of material and human resources for each activity within the demerged entity prior to the operation. Restructuring and management motives could be valid economic motives, but their classification depends on the substantiation of the facts.

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