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V1493-16 8 April 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships taxed via income attribution rather than Corporation Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) operating a student residence should be subject to Corporation Tax. The DGT ruled that these entities continue to be taxed through the attribution of income to their members.

The question raised

Whether the community of property must be taxed under Corporate Income Tax as of 2016.

The DGT's ruling

Civil companies with a commercial purpose and legal personality are taxpayers of Corporate Income Tax. To possess legal personality for tax purposes, the company must be constituted by public deed or submit a private document to the Administration to obtain a Tax Identification Number (NIF). A commercial purpose implies performing production, exchange, or service activities that are not excluded (such as agricultural or professional activities). Communities of property, as they are not civil companies with these characteristics, are taxed under the income attribution regime.

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