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V0176-20 23 January 2020 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Tax exemption for business start covers two fiscal periods, requiring registration in December of the second year

A community of property asks when to file the IAE registration after applying the startup exemption. The DGT responds that the exemption covers the first year and the following one, with registration required in December of the second year.

The question raised

Question as to in which year the activity would be subject and not exempt from the tax and, therefore, when the registration declaration would be required.

The DGT's ruling

The exemption for the commencement of economic activity in Spanish territory lasts for the first two tax periods, including the period of commencement. Taxpayers applying this exemption must submit the registration declaration during the immediate preceding December of the year in which they become subject and not exempt. In this specific case, after commencing activity in 2016, the exemption applies to 2016 and 2017, and the registration must be submitted in December 2017 to be taxed in 2018.

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