Back to index
V3680-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión parcial

To qualify for the special spin-off regime, segregated assets must constitute a line of business and the operation must have valid economic reasons

A company engaged in earthmoving and real estate leasing has queried whether its partial spin-off can qualify for the special Corporate Tax regime. The DGT indicates that for this to apply, the transferred assets must constitute an autonomous economic unit (a line of business) and the transaction must be driven by valid economic reasons.

The question raised

Question posed: Whether the proposed operation may qualify for the special regime under Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

Partial demergers may qualify for the special regime if they comply with Article 76.2 of the LIS and the segregated assets constitute a business line, understood as an economic unit capable of operating by its own means with a distinct organization. Furthermore, the operation must not have the primary objective of tax fraud or evasion, and must be carried out for valid economic reasons pursuant to Article 89.2 of the LIS. The existence of a business line and the validity of the economic reasons are matters of fact that must be substantiated.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact