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V2357-14 9 September 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · residencia fiscal

A foreign subsidiary's transfer of fiscal residence to Spain does not generate income

A Dutch company moves its fiscal residence and registered office to Spain while retaining its legal personality. The DGT states that this transfer does not constitute taxable income for the Corporate Income Tax base.

The question raised

Whether the transfer of residence to Spanish territory of the Dutch subsidiary will determine taxation for any income under Spanish Corporate Income Tax.

The DGT's ruling

The transfer of the registered office of a foreign entity to Spain entails obtaining tax residence in Spanish territory if the legal requirements are met. This process does not determine the generation of income for the taxable base of Corporate Income Tax or Non-Resident Income Tax. The tax period shall coincide with the entity's financial year and the accrual shall occur on the last day of said period.

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