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V0466-14 20 February 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · unión temporal de empresas

Changing the object of a temporary joint venture leads to loss of special Corporation Tax regime

A query was raised regarding whether changing the object of a Temporary Joint Venture (UTE) affects its validity or requires new registration. The DGT ruled that performing activities different from those specified in its constituent documents results in the loss of its special tax regime.

The question raised

Whether the modification of the purpose of the UTE affects its validity, efficacy, and term, or what effects such modification may entail, as well as whether its registration in the Special Registry of Temporary Joint Ventures of Companies is necessary.

The DGT's ruling

UTEs must be dedicated exclusively to the fulfillment of the purpose for which they were constituted. The exercise of activities other than those indicated in their constitutive documents is grounds for the loss of the special tax regime. To execute a different work, service, or supply, the members should constitute a new UTE that complies with the requirements of Law 18/1982.

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