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V1288-16 30 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships to continue being taxed via income attribution for Personal Income Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) should be subject to Corporate Tax or maintain the income attribution regime. The Directorate General for Taxes (DGT) ruled that joint ownerships continue to be taxed through the attribution of income to their members.

The question raised

Whether the inquiring community of property must pay Corporate Income Tax as of 01/01/2016. And if so, how each of the partners must pay tax. Or whether it should continue to pay tax as to date under the income attribution regime.

The DGT's ruling

Civil societies with a commercial purpose are taxpayers of Corporate Income Tax if they possess fiscal legal personality. To this end, they must have declared themselves to the Administration by means of a public deed or a private document provided for the purpose of obtaining a Tax Identification Number (NIF). However, communities of property are not subject to Corporate Income Tax and their income is attributed to the members in accordance with the Personal Income Tax Law (LIRPF).

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