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V1157-16 22 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships to continue being taxed via income attribution for Personal Income Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) should be subject to Corporate Tax or maintain the income attribution regime. The Directorate General for Taxes (DGT) clarifies that only civil societies with legal personality and a commercial purpose are subject to Corporate Tax.

The question raised

1) Whether the inquiring community of property must be taxed under Corporate Income Tax as of 01/01/2016. And if so, how each partner must be taxed, or whether it must continue to be taxed as to date under the income attribution regime.

The DGT's ruling

As of January 1, 2016, communities of property shall continue to be taxed under the income attribution regime in accordance with the Personal Income Tax Law. To be a taxpayer for Corporate Income Tax purposes, a civil society must possess legal personality, demonstrated to the Administration through a public deed or a private document submitted for the assignment of a Tax Identification Number, and must have a commercial purpose. Agricultural, livestock, forestry, mining, and professional activities are excluded.

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