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V0137-16 19 January 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Professional civil societies are not subject to Corporation Tax due to lack of commercial purpose

A query was raised regarding whether a professional civil society of lawyers should be subject to Corporation Tax. The DGT ruled that, as it carries out a professional activity, it lacks a commercial purpose and must continue to be taxed through the imputation of income.

The question raised

Whether it will be affected by Article 7 of Law 27/2014, of November 27, on Corporate Income Tax and its legal nature.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must have legal personality before the Administration and a commercial purpose. A commercial purpose is understood as the performance of production, exchange, or service provision activities in a non-excluded sector. Professional activities are excluded from the commercial scope; therefore, these societies are not taxpayers for Corporate Income Tax.

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