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V1269-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

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

A query was raised regarding whether a civil company providing services to farmers should be subject to Corporate Tax. The DGT ruled that it must, provided it has a commercial purpose and has presented itself as an entity to the Tax Administration.

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, which occurs if it is constituted by public deed or private document submitted to the Administration to obtain a Tax Identification Number. Furthermore, it must have a commercial purpose, understood as the performance of production, exchange, or service activities for the market, excluding agricultural, livestock, forestry, mining, and professional activities.

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