A company has requested clarification on whether, following the exclusion of two companies from its tax group during the financial year, it should exclude their turnover when calculating whether the group exceeds the €10 million threshold for the new instalment payment regime. The DGT has ruled that to determine the application of the fourteenth additional provision of the Corporate Income Tax Act (LIS), the turnover of companies that have ceased to be subsidiaries must not be included.
Question posed: Whether the net amount of the turnover in the 12 months preceding 2016 to be considered for the purposes of the new calculation system for the first installment payment (October), which is affected by the new composition of the tax group and the new fourteenth additional provision of Law 27/2014, of 27 November, on Corporate Income Tax, added by Royal Decree-Law 2/2016, of 30 September, introducing tax measures aimed at reducing the public deficit, is that which corresponds to the tax group of which the consulting entity is the parent company as configured for the 2016 tax period, which implies not taking into account the net amount of the turnover in the 12 months preceding 2016 of the two companies that are no longer part of the tax group with effect from 1 January 2016.
To calculate the net amount of the tax group's turnover in the 12 months preceding the start of the tax period, the amount of companies that lose their status as subsidiaries must not be included. If, after excluding these companies, the group's turnover does not exceed 10 million euros, the special provisions of the fourteenth additional provision of the LIS shall not apply to the installment payments of that fiscal year.
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