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V0596-16 12 February 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidades vinculadas

Entities A and F are related by kinship, despite not forming a commercial group

A query was raised regarding whether two companies are related entities for the purpose of determining the tax treatment of a business transfer. The DGT ruled that, although they do not belong to the same commercial group, they are considered related due to the participation of the same shareholders.

The question raised

1. Whether companies A and F are related entities for the purposes of the LIS.

The DGT's ruling

Entities A and F are not subject to a single decision-making unit to constitute a business group according to the Commercial Code. However, as they fall under the related-party assumption of Article 18.2 letter g) of the LIS, the transfer of the business must be assessed at its market value. As they do not belong to the same group, the regime for the imputation of negative income under Articles 11.9 and 11.10 of the LIS does not apply.

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