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V1271-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

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

A query was raised regarding whether a civil company engaged in the IT trade is liable for Corporate Tax. The DGT ruled that it is, as it possesses a commercial purpose and legal personality for tax purposes.

The question raised

Whether the consulting society will be a taxpayer for Corporate Income Tax.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must possess legal personality and a commercial purpose. Fiscal legal personality is acquired if the society manifests itself before the Administration through a public deed or a private document submitted to obtain a Tax Identification Number (NIF). The commercial purpose consists of performing production, exchange, or service activities in non-excluded sectors (such as agriculture, livestock, forestry, mining, or professional services).

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