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V1645-16 15 April 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships with butchery activities continue to be taxed under the income attribution regime

The taxpayer asks whether their joint ownership (comunidad de bienes), engaged in butchery, must pay Corporate Tax following the reform of Law 27/2014. The DGT rules that it will continue to be taxed under the income attribution regime, as it is not a civil society with legal personality and a commercial purpose.

The question raised

Whether the amendment to Law 27/2014, of November 27, on Corporate Income Tax, also affects communities of property and, if so, whether the activity carried out by the consultant implies or not a commercial purpose for the purpose of whether it transitions to taxation under Corporate Income Tax as of January 1, 2016.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must possess legal personality and a commercial purpose. Fiscal legal personality requires having been manifested before the Administration through a public deed or a private document provided for the assignment of the NIF. A commercial purpose implies performing production, exchange, or service activities in a non-excluded sector (such as the agricultural or professional sector). As it is a community of property, the consulting entity maintains its income attribution regime.

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