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V3687-20 30 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Requirements for claiming special contribution regime under activity branch

A taxpayer asks whether contributing their real estate leasing activity to a new company qualifies for the special reorganisation regime. The DGT states that this is possible if the assets constitute an activity branch and there are valid economic reasons.

The question raised

Question posed 1) Whether the described operations could benefit from the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether valid economic motives exist.

The DGT's ruling

To benefit from the special regime for the contribution of a branch of activity, the assets must constitute an economic unit capable of operating by its own means. In this case, by contributing real estate and personnel with commercial accounting, the requirements of the LIS are met. The economic motives presented could be valid, although their nature is a matter of fact. The operation would not be subject to VAT, would be exempt from ITP and AJD, and would not accrue IIVTNU if the assets constitute a branch of activity.

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

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