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V1638-14 26 June 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · residencia fiscal

Move of foreign entity's domicile to Spain does not create taxable events or end the fiscal period

A company asked whether moving a Dutch subsidiary's domicile to Spain creates taxable events or ends the fiscal period. The DGT replied that the move does not generate taxable events and does not interrupt the fiscal period.

The question raised

1. Whether the transfer of the registered office of entity H from the Netherlands to Spain does not give rise to any taxable event for Corporate Income Tax, nor for Non-Resident Income Tax, nor determines the early conclusion of a tax period for the redomiciled entity.

The DGT's ruling

The transfer of the registered office of an entity to Spain entails obtaining tax residence in Spanish territory. This change does not determine the early conclusion of the tax period nor does it generate income in itself for Corporate Income Tax or Non-Resident Income Tax. The entity will become a taxpayer for Corporate Income Tax while maintaining its financial year. Furthermore, the transferred entity may be integrated into the tax group of the requesting entity from the first day of the tax period in which the transfer occurs.

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