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V0984-16 14 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

A leasing company may carry out economic activity if it uses staff from another company within the same group

A query was raised regarding whether a company dedicated to residential leasing can qualify its activity as economic by utilising staff from another entity within the same group. The DGT ruled that, if both entities belong to the same group under the Commercial Code, the staff from the other entity may be counted towards meeting the economic activity requirement.

The question raised

Whether, for the purposes of Article 5 of the Corporate Income Tax Law, the person hired by entity X is taken into account to qualify the activity of NEW as economic.

The DGT's ruling

For a real estate leasing company to have economic activity, it must employ at least one person under a full-time employment contract. If the entities are part of the same group pursuant to Article 42 of the Commercial Code, the economic activity shall be determined by taking into account all entities belonging to the same group. Therefore, if entity X and entity NEW belong to the same group and X has one worker with a full-time employment contract, entity NEW carries out economic activity.

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