Companies transferring client portfolios cannot apply the extraordinary profit reinvestment regime

The possibility of applying the extraordinary profit reinvestment regime to reduce the tax burden following the sale of assets has been ruled out for operations carried out in the current fiscal year. Following a query regarding the transfer of a client portfolio, the administration has clarified the scope of the current regulations.

What the DGT has decided

The Dirección General de Tributos (DGT) has determined that it is not appropriate to apply Article 21 of Law 43/1995 to the transfer of a client portfolio carried out in 2023. This criterion is based on the fact that said article was repealed for tax periods beginning on or after January 1, 2002.

Although the Corporate Tax Law (LIS) maintains a transitional regime, this only allows the application of the rule to income generated in periods prior to the aforementioned repeal date. Consequently, the income derived from the transfer of the portfolio must be fully included in the taxable base of the period in which it accrues, without the possibility of deferral through reinvestment.

What this means for you

For companies operating in the current market, this resolution confirms that tax planning based on the reinvestment of extraordinary profits from the sale of client portfolios is not a viable option. Companies must take into account that:

• The capital gain obtained from the sale of these assets will be taxed directly under Corporate Tax (IS) for the corresponding fiscal year.
• There is no tax deferral mechanism through the purchase of new assets under this specific assumption.
• The applicable regulation is Law 27/2014 (LIS), which does not contemplate this benefit for income generated after the 2002 reforms came into force.

What should be done

Given the impossibility of using this reinvestment regime, companies must evaluate the impact of the transfer on their taxable base for the fiscal year. It is necessary to analyze the structure of the operation and the nature of the transferred assets to determine the exact tax burden. It is recommended to assess each particular situation with a specialist to ensure that the inclusion of the income in the taxable base is carried out in accordance with current regulations.