With effect from January 2013, the Law on Corporate Income Tax has been modified in cases of change of residence and transfer abroad of assets allocated to a permanent establishment located in Spanish territory, when the assets concerned are transferred to an EU Member State. The tax authorities, at the request of the taxpayer, may allow a deferral of payment of the accrued tax liability to the date of transfer of the affected assets to third parties.
In line with the above, in the case of corporate restructuring operations (mergers, demergers, or share exchanges), the payment of tax liability emerging from hidden reserves generated in cases of transfer of assets to an EU Member State will be deferred, at the request of the taxpayer, to the date of transfer of the affected assets to third parties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.