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V0837-21 8 April 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · impuesto sobre actividades de juego

Residency and physical presence required for reduced gaming tax rates

An online gaming company asks whether moving its headquarters and fiscal address to Ceuta qualifies it as a resident with real establishment to benefit from reduced tax rates. The DGT outlines the requirements for fiscal residency and the material criteria for real establishment.

The question raised

Whether, given that the Applicant has transferred its place of effective management to Ceuta, and, consequently, also its tax residence (and, subsequently, will also transfer its registered office), based on the facts and circumstances described in this ruling, it would be considered a tax resident in Ceuta and understood to be "effectively established" in said city, for the purposes of Article 47.7.2 of the Gambling Regulation Law. In particular:

The DGT's ruling

To apply the reduced rates of the Gambling Tax, the operator must have tax residence in Ceuta or Melilla and be effectively established therein. Tax residence is determined by incorporation, registered office, or place of effective management. Effective establishment is a question of fact to be assessed by the Administration, but it is considered reasonable if three requirements are met: that more than 50% of the workforce resides there, that more than 50% of the payroll corresponds to said employees, and that intra-group services do not exceed 50% of the total costs.

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