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V5454-26 7 August 2026 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · neutralidad fiscal

Potential application of tax neutrality regime when contributing rural estates to new companies

An agricultural company has requested a ruling on whether the contribution of two rural estates to two new entities (NewCo1 and NewCo2) can qualify for the special tax neutrality regime. The Directorate General for Taxes (DGT) has determined that the transaction could meet the requirements for said regime, either as a contribution of business branches or as a contribution of assets.

The question raised

Whether the special regime provided for in Chapter VII of Title VII of the Corporate Income Tax Law is applicable.

The DGT's ruling

The transaction may qualify for the tax neutrality regime under Chapter VII of Title VII of the LIS. If the elements provided constitute a line of business (autonomous economic unit), Article 76.3 would apply. If they do not constitute a line of business, the regime for the contribution of assets under Article 87.1 may be applied, provided that the acquirer is a resident and the contributor retains at least 5% of the capital. The regime shall not apply if the primary objective is tax fraud or evasion.

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