Back to index
V3678-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación de rama de actividad

Requirements for applying the special regime for contribution of a line of business: economic unit and valid economic reasons

A company manufacturing carpentry and leasing real estate inquires whether it can contribute its leasing activity to a new company under the special regime. The DGT indicates this is possible if the assets constitute an autonomous economic unit and the transaction is driven by economic restructuring motives rather than solely for tax advantages.

The question raised

Whether the special tax regime described in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, would be applicable to said commercial transaction.

The DGT's ruling

To benefit from the special regime for the contribution of a business line, the transferred assets must constitute an economic unit capable of operating by its own means with a distinct organization. Furthermore, the transaction must be carried out for valid economic reasons, such as the restructuring or rationalization of activities, and must not have the primary objective of tax fraud or evasion. The existence of a business line requires that the activity be prior in the transferor and that the transferee be able to develop it autonomously.

Book your free first meeting