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V1318-16 31 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Non-commercial joint ownerships are not subject to Corporation Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) should be subject to Corporation Tax since 2016. The DGT ruled that only civil societies with a commercial purpose are liable for this tax.

The question raised

Whether the community of property must pay Corporate Income Tax as of 2016. In the event that Corporate Income Tax is applicable, whether the deadline to dissolve the company expires on June 30, 2016, or if that date is for adopting the agreement.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, the civil society must possess fiscal legal personality, manifested through a public deed or a private document submitted to the Administration to obtain the Tax Identification Number. Furthermore, it must have a commercial purpose, understood as the performance of production, exchange, or service provision activities for the market. Agricultural, livestock, forestry, mining, and professional activities are excluded. In this case, the community of property is not a taxpayer.

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