Skip to content
Back to index
V3695-20 30 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · escisión total

Special spin-off regime cannot be applied if segregated assets do not constitute business lines

The taxpayer asks whether a non-proportional total spin-off of industrial warehouses can qualify for the special regime under the Corporate Income Tax Act. The DGT rules that it cannot, as the transferred assets do not constitute autonomous business lines.

The question raised

Whether the described operation could qualify for the special 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 qualify for the special regime, the acquired assets must constitute business lines. A business line is a set of assets capable of functioning by its own means as an autonomous economic unit. In this case, the allocation of isolated industrial buildings without differentiated management and organization does not allow for the consideration that business lines are being transferred.

Book your free first meeting