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V1051-16 16 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

The tax group is not extinguished if the dominant entity becomes a non-resident and the subsidiary undergoes a transformation

A query is made as to whether a tax group is extinguished when the dominant entity becomes a non-resident company and one of the subsidiaries transforms into a limited liability company. The DGT responds that the group is not extinguished and retains its number.

The question raised

Question posed: Whether tax group X is not extinguished, retaining its group number, with the new dominant company being entity H and the subsidiary companies being entities X (following its transformation), A, B, and C.

The DGT's ruling

If the dominant entity in 2014 becomes a non-resident entity in 2015, the extinction of the tax group does not occur and the same number is preserved. The transformation of a subsidiary entity into a limited liability company does not affect its legal personality; therefore, the group is not extinguished. The non-resident dominant entity must designate a representative entity in Spain through an agreement communicated to the Administration.

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