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V3662-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Requirements of the line of business to apply the special spin-off regime

A real estate leasing company inquires whether its non-proportional total spin-off may qualify for the special regime of Corporate Income Tax. The DGT responds that, as it involves the transfer of isolated real estate assets without a differentiated business organization, the line of business requirement is not met.

The question raised

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

The DGT's ruling

For a non-proportional total spin-off to benefit from the special regime, each of the segregated assets must constitute a line of business, understood as an autonomous economic unit capable of operating by its own means. This requires a differentiated business organization and a management model that corresponds to the nature of the operation. If the transaction only transfers a set of isolated elements, such as real estate, without meeting these requirements, the special regime is not applicable.

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