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V0415-16 3 February 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil societies with farming and livestock activities are not subject to Corporate Tax

A query was raised regarding whether a civil society dedicated to farming and livestock exploitation is liable for Corporate Tax. The DGT has determined that, as it carries out activities outside the commercial sphere, it is not a taxpayer for this tax and remains under the income attribution regime.

The question raised

Whether the civil society is considered a taxpayer for Corporate Income Tax with effect from January 1, 2016.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must have legal personality (manifested before the Administration) and a commercial purpose. A commercial purpose is understood as the performance of production, exchange, or service activities in a non-excluded sector. Agricultural, livestock, forestry, and mining activities are considered outside the commercial scope; therefore, civil societies performing such activities are not taxed under Corporate Income Tax, but rather through the attribution of income regime.

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