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V1279-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships are taxed via income attribution rather than Corporation Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) engaged in tax consultancy is liable for Corporation Tax. The DGT ruled that joint ownerships continue to be taxed through the attribution of income to their members.

The question raised

Whether the consulting company will be a taxpayer of Corporate Income Tax.

The DGT's ruling

Only civil societies with a commercial purpose and fiscal legal personality are taxpayers of Corporate Income Tax. To possess fiscal legal personality, the civil society must be constituted by public deed or through a private document submitted to the Administration to obtain a Tax Identification Number. The commercial purpose requires performing production, exchange, or service activities in a non-excluded sector, excluding professional activities.

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