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V0816-26 13 April 2026 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidades de nueva creación

No reduced IS rate for new entities if part of a group

A fully-owned Valencian government society asks whether it can apply the reduced IS rate for new entities and IAE exemption. The DGT rules that the reduced IS rate does not apply because the Government exercises control, integrating it into a group of companies.

The question raised

1. Applicability of the reduced tax rate of 15% regulated by Article 29 of Law 27/2014, of November 27, on Corporate Income Tax, in the case of a newly created entity.

The DGT's ruling

In Corporate Income Tax, the 15% rate does not apply to newly created entities that are part of a group pursuant to Article 42 of the Commercial Code, in which case the Generalitat exercises control over the company. In the Business Activity Tax (IAE), the exemption for the commencement of activity is not applicable when there is a succession in the ownership of an economic activity that was already being carried out in Spanish territory by other taxable persons.

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