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V1366-19 11 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Income from a partnership exploiting photovoltaic energy is attributed to members as business income

A taxpayer queried whether income from a partnership operating a photovoltaic installation should be taxed as business income. The DGT ruled that if the partnership organises the means of production, the income is attributed to its members as such.

The question raised

1) Taxation of income obtained from the exploitation of photovoltaic installations under Personal Income Tax, in view of the facts presented

The DGT's ruling

Communities of property are not taxpayers, but rather attribute income to their members pursuant to Article 8.3 of the Personal Income Tax Law (LIRPF). If the entity organizes its own means of production and human resources for the activity, the attributed income retains the nature of economic activities. It is not possible for the members of the community to transfer or lease assets to the community itself, as these assets already belong to them in undivided interest. The ownership of the activity and its administrative recognition rest with the community, with the income being attributed to its members.

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