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V2508-24 10 December 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad parcialmente exenta

Income from an association providing apartments is subject to Corporate Tax

A non-profit association has requested a ruling regarding the tax classification of its income from membership fees and apartment sales. The DGT has determined that the management of apartments constitutes an economic activity; therefore, the resulting income is subject to Corporate Tax.

The question raised

1. The classification for Corporate Income Tax purposes of the income and expenses accrued by the association in its habitual activity.

The DGT's ruling

The making available of apartments involves the organization of material and human resources to distribute services, constituting an economic activity. Therefore, the membership fees and the income from the transfer of real estate assets used for said activity are subject to Corporate Income Tax. Expenses directly related to this activity are tax-deductible and losses from previous financial years may be offset.

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