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V1107-24 ·22 May 2024 ·consulta-vinculante Medium impact
Tax

Membership fees subject to Corporation Tax if they fund an economic activity

An association sought clarification on whether entrance and annual membership fees were exempt or constituted an economic activity. The DGT ruled that if the association's activities constitute an economic activity, the income and the fees funding them will be subject to tax.

In 6 key points

How it affects those involved

Non-profit organisations must distinguish between purely social activities and those that constitute an economic activity, as the latter triggers Corporation Tax liabilities on related income and membership fees.

Lifecycle

2024-05-22PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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