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V1722-14 3 July 2014 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · establecimiento permanente

A mooring point does not constitute a permanent establishment for a non-resident company

A British company renting vessels in Spain asks whether a mooring point constitutes an establishment and how its income is taxed. The DGT determines that a mooring point is not an establishment and examines the possibility of exemption from the special transport tax.

The question raised

1st. Concept of establishment.

The DGT's ruling

A mooring point for vessels is not an establishment because it is not a place from which an economic activity is carried out. If the company transfers the vessel to a resident for rental purposes, the exemption from special tax may be requested provided that the transferee company is the one contracting with end customers. Income from the transfer of use is classified as royalties if there is no risk or business organization on the part of the transferor.

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