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V0144-16 19 January 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · atribución de rentas

Agricultural partnerships to continue being taxed under Personal Income Tax

A query was raised regarding whether an agricultural partnership should transition from Personal Income Tax (IRPF) to Corporate Tax. The Directorate General for Taxes (DGT) ruled that, as an agricultural activity, it lacks a commercial purpose and must maintain the income attribution regime.

The question raised

It is asked whether the consulting community of property must remain under the income attribution regime of Personal Income Tax or change in the year 2016 to taxation under Corporate Income Tax.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must possess legal personality and a commercial purpose. Fiscal legal personality is acquired if the entity presents itself to the Administration by means of a public deed or a private document provided to obtain the Tax Identification Number (NIF). A commercial purpose requires performing production, exchange, or service activities within a sector not excluded from the commercial scope. Agricultural, livestock, forestry, mining, and professional activities are excluded from this commercial scope.

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