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A green area urban conservation entity inquired whether it was required to register for economic activities and its tax exemption status. The DGT has determined that it is subject to Corporate Tax because it carries out an economic activity and must register for the Business Activity Tax (IAE) based on the services it provides.
This ruling clarifies that urban conservation entities cannot rely solely on their non-profit nature to avoid tax obligations if their activities constitute an economic activity, necessitating registration for both Corporate Tax and Business Activity Tax.
The tax team reviews your specific situation.
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