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V0631-18 8 March 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships are taxed via income attribution rather than Corporation Tax

A taxpayer inquired whether a joint ownership established to operate a bar would be subject to Corporation Tax. The DGT ruled that, as a joint ownership, it will be taxed under the income attribution regime within Personal Income Tax.

The question raised

1. Whether the consulting company will be a taxpayer for Corporate Income Tax.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must have a commercial purpose and fiscal legal personality, manifested through a public deed or a private document submitted to the Administration to obtain the NIF. Property communities, as they are not civil societies with a commercial purpose, are taxed under the income attribution regime. Under this regime, income is attributed to the partners, who maintain the nature of the earnings according to their source.

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