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V1280-16 29 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

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 retail trade is liable for Corporation Tax. The DGT ruled that only civil societies with a commercial purpose and fiscal legal personality are subject to this tax.

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, a civil society must have a commercial purpose and fiscal legal personality. Fiscal legal personality is acquired through a public deed or a private document submitted to the Administration to obtain a Tax Identification Number (NIF). A commercial purpose implies performing production, exchange, or service activities in non-excluded sectors such as the agricultural or professional sectors. Asset communities are not taxpayers for Corporate Income Tax and are taxed via income attribution under Personal Income Tax (IRPF).

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