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V1270-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

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

A query was raised regarding whether a civil company engaged in insurance agency activities is liable for Corporate Tax. The DGT ruled that it is, provided the company 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 purposes.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must have a commercial purpose and legal personality for tax purposes. Legal personality is recognized if the agreements are not secret and the entity presents itself to the Administration by means of a public deed or a private document provided to obtain the Tax Identification Number (NIF). The commercial purpose consists of performing activities of production, exchange, or provision of services in a non-excluded sector (such as the agricultural, livestock, forestry, mining, or professional sectors).

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