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V2170-16 19 May 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidades de nueva creación

New companies cannot apply the 15% reduced rate if they acquire the activity of a related entity

A query was raised regarding whether a new limited company could apply the reduced tax rate for newly created entities after acquiring the business activity of a civil society. The DGT ruled that it cannot apply this rate because the activity is being transferred by a related entity.

The question raised

What tax rate could apply to the new company in the 2016 and 2017 fiscal years, assuming that it obtained profits in both years?

The DGT's ruling

An economic activity shall not be deemed to have commenced if it has been previously carried out by related entities and transferred to the new company. As the civil society and the new limited liability company are related entities, and as the activity is transferred through dissolution and contribution, the new company must be taxed at the general rate of 25%.

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