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V1295-16 30 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Joint ownerships are not subject to Corporation Tax, but rather to income attribution

A query was raised regarding whether a joint ownership (comunidad de bienes) operating a dental clinic 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. A commercial purpose requires performing production, exchange, or service activities, excluding agricultural, livestock, forestry, mining, and professional activities.

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