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V1294-16 30 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 of insurance agents is subject to Corporate Tax. The DGT ruled that civil companies with commercial purposes and fiscal legal personality are liable for this tax, whereas those that do not meet these requirements are taxed via income attribution.

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, the civil society must have a commercial purpose, understood as the performance of an economic activity of production, exchange, or provision of services for the market in a sector not excluded from the commercial sphere. Likewise, it must have fiscal legal personality, which requires that the agreements are not secret and that the entity has manifested itself before the Tax Administration by means of a public deed or private document provided for the assignment of the NIF. Agricultural, livestock, forestry, mining, and professional activities are excluded.

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