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V1410-15 5 May 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · unión temporal de empresas

Companies in a temporary joint venture may opt for exemption from foreign positive income

The DGT clarifies that member companies of a temporary joint venture operating in Angola may apply for exemption from positive foreign income, provided legal requirements are met.

The question raised

Question raised 1. Whether companies that are members of the UTE and whose activity is carried out in Angola may avail themselves, for income generated in 2014 and subsequent years, of the exemption method, that is, by not including in the individual tax base of the participants the proportional part corresponding to them of the positive returns obtained by the UTE abroad.

The DGT's ruling

For periods beginning in 2014, companies that are members of a Joint Venture (UTE) operating abroad may opt not to include in their tax base the portion of positive income obtained by the UTE abroad. From 2015 onwards, under the Corporate Income Tax Law (LIS), these companies may avail themselves of the exemption provided in Article 22 or the double taxation deduction provided in Article 31, provided that the requirements of said articles are met. In both cases, negative income obtained abroad shall not be tax deductible.

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