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V1997-14 24 July 2014 · SG de Tributos Locales Criterion in force
OTRO · iae

Societies in a group not exempt from IAE if combined turnover exceeds 1 million euros

The DGT clarifies whether the IAE exemption for turnover below 1.000.000 € applies to each company individually or to the group as a whole. It states that the turnover of all group entities must be aggregated in accordance with Article 42 of the Commercial Code.

The question raised

Whether they are exempt from the IAE, given that the net amount of the turnover of each of the companies is less than €1,000,000, or whether the sum of all of them, which exceeds the aforementioned limit, must be considered.

The DGT's ruling

For the IAE exemption, the net amount of the turnover is determined by the totality of the taxpayer's activities. If the entity is part of a group of companies pursuant to Article 42 of the Commercial Code, the net amount of the turnover of the entire group of entities belonging to said group must be considered. This obligation to aggregate turnover applies regardless of whether the group is required or not to prepare consolidated annual accounts.

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