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V0380-20 19 February 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad de nueva creación

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

A query was raised regarding whether a newly formed entity can apply the 15% tax rate after acquiring an economic activity. The DGT indicates that this is not permissible if the activity was previously carried out by a related party and subsequently transferred.

The DGT's ruling

In order for a newly created entity not to lose the reduced rate of 15%, it must not have received the economic activity from linked persons or entities pursuant to Article 18 of the LIS. If the activity is transferred under any legal title from a linked person, the entity shall not be deemed to have commenced economic activity for the purposes of this benefit. In this case, as the previous activity of the father is linked to the company of the children, the reduced rate would not apply if a transfer occurred.

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