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V0132-16 19 January 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil companies with commercial purposes and legal personality to be subject to Corporate Tax

A query was raised regarding whether a community of assets used for rentals and tourist accommodation should be taxed under Corporate Tax or through income attribution. The DGT ruled that only civil companies with a commercial purpose and fiscal legal personality shall be taxpayers for Corporate Tax.

The question raised

Whether, as of the year 2016, the community of property shall be a taxpayer for Corporate Income Tax or whether the income shall continue to be attributed to the members in proportion to their participation in the community of property.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, the civil society must have a commercial purpose, understood as the performance of an economic activity of production, exchange, or provision of services for the market. Likewise, it must have fiscal legal personality, which requires that the agreements are not secret and are manifested before the Administration through a public deed or a private document provided for the assignment of the NIF. Agricultural, livestock, forestry, mining, and professional activities are excluded from the commercial scope.

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