Back to index
V1347-17 2 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Income from a community of property is allocated according to agreements between members or in equal shares

A query was made regarding how the net income from an economic activity should be distributed within a community of property. The Directorate General of Taxes (DGT) ruled that allocation is carried out according to the agreements between the members or, if no such agreements are reliably documented, in equal shares.

The question raised

How the co-owners must distribute the net return from the economic activity.

The DGT's ruling

Entities under the income attribution regime are not taxpayers; instead, income is attributed to their members while maintaining the nature of the source. For returns to be considered from economic activity, the entity must organize its own means of production or human resources. The attribution of income is carried out according to the applicable rules or agreements, or in equal parts if these are not reliably recorded before the Administration.

Book your free first meeting