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V1984-19 ·31 July 2019 ·consulta-vinculante Medium impact
Tax

Turnover of companies linked by kinship must be aggregated to apply small-scale entity incentives

A company inquired whether it could apply incentives for small-scale entities based solely on its own turnover. The DGT ruled that, as the shareholders are siblings (second-degree kinship), the turnover of the entire group of entities in which they participate must be taken into account.

In 5 key points

How it affects those involved

Companies with shareholders related by blood or marriage must aggregate their turnover when determining eligibility for small-scale tax incentives, potentially disqualifying them if the combined turnover exceeds the threshold.

Lifecycle

2019-07-31PublishedPublished 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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