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V0375-20 19 February 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad de nueva creación

Reduced 15% rate cannot be applied if the activity was transferred by a related party

A query was raised regarding whether a newly incorporated entity can apply the reduced Corporation Tax rate. The DGT ruled that it cannot do so if the economic activity was previously carried out by a related party and subsequently transferred to the entity.

The DGT's ruling

To apply the 15% rate, the entity must be newly created and carry out an economic activity. The activity shall not be deemed to have commenced if it was previously carried out by linked persons or entities and subsequently transferred to the new entity. In this case, as the natural person is a shareholder with 25% of the capital, they are considered a linked person, and the transfer of the activity and client portfolio precludes the application of the reduced rate.

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