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V2193-16 20 May 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil companies with commercial purposes and fiscal legal personality are subject to Corporate Tax

A query was raised regarding whether a civil law firm should be subject to Corporate Tax. The DGT ruled that, as it has a commercial purpose and presents itself as an entity to the Administration, it must be taxed as a corporate taxpayer.

The question raised

Whether the consulting entity will be considered a taxpayer for Corporate Income Tax purposes as of January 1, 2016.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must possess fiscal legal personality and a commercial purpose. Legal personality is acquired if the agreements are not secret and the entity presents itself to the Administration by means of a public deed or a private document submitted to obtain a Tax Identification Number (NIF). A commercial purpose implies performing production, exchange, or service activities in a non-excluded sector, excluding agricultural, livestock, forestry, mining, and professional activities.

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