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V1342-16 31 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil companies with commercial purposes and legal personality are subject to Corporate Tax

A query was raised regarding whether a civil company, established by public deed and engaged in property leasing, is liable for Corporate Tax. The DGT ruled that it is, as it possesses a commercial purpose and legal personality for tax purposes.

The question raised

Whether the consulting entity is a taxpayer for Corporate Income Tax as of January 1, 2016.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must have legal personality and a commercial purpose. Legal personality is recognized if the agreements are not secret and the entity presents itself to the Administration through a public deed or a private document provided to obtain the Tax Identification Number. The commercial purpose consists of carrying out an economic activity of production, exchange, or provision of services for the market, excluding agricultural, livestock, forestry, mining, and professional activities.

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