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V2425-15 ·30 July 2015 ·consulta-vinculante Medium impact
Tax

No Corporation Tax withholding required if business lease constitutes an organised economic activity

A company has requested clarification on whether it must apply Corporation Tax withholding when leasing a business (a café) under an industrial lease agreement. The DGT indicates that if the lease constitutes an economic activity with its own organisational structure, withholding is not applicable.

In 6 key points

How it affects those involved

Companies leasing businesses via industrial lease agreements must assess whether the arrangement constitutes an organised economic activity to determine the correct tax withholding obligations.

Lifecycle

2015-07-30PublishedPublished 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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