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V1263-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil professional partnerships are not subject to Corporation Tax due to lack of commercial purpose

A civil law firm has enquired whether it should have been subject to Corporation Tax since 2016. The DGT has ruled that it is not, as professional activities are excluded from the commercial sphere.

The question raised

Whether the consulting entity must be subject to Corporate Income Tax as of 2016.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must have legal personality and a commercial purpose. Legal personality is recognized if the agreements are not secret and have been disclosed to the Tax Administration. A commercial purpose requires performing production, exchange, or service activities in a non-excluded sector. Professional activities are excluded from the commercial scope and, therefore, are not subject to this tax.

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