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V0977-16 14 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil companies with commercial purpose and tax legal personality are subject to Corporate Tax

A query was raised regarding whether a civil company providing legal services is liable for Corporate Tax. The DGT ruled that to be liable, the entity must possess legal personality before the Administration and a commercial purpose, thereby excluding professional activities.

The question raised

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

The DGT's ruling

To be a taxpayer for Corporate Income Tax, the civil society must possess fiscal legal personality, manifesting itself before the Administration through a public deed or a private document submitted to obtain the NIF. Likewise, it must have a commercial purpose, understood as the performance of production, exchange, or service activities for the market. Agricultural, livestock, forestry, mining, and professional activities are excluded. If the civil society performs a professional activity subject to Law 2/2007, it will not have a commercial purpose and will be taxed under the income attribution regime.

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