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V2646-14 7 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad urbanística

Urban conservation entities are subject to Corporation Tax due to economic activity

An urban conservation entity inquired whether it could qualify for the partially exempt entities regime. The DGT ruled that, by providing maintenance and cleaning services through the organisation of resources to achieve its purpose, its activity constitutes an economic activity; therefore, its income is not exempt.

The question raised

1) Whether the special tax regime for partially exempt entities regulated in Chapter XV of Title VII of the TRLIS is applicable to the consultant.

The DGT's ruling

Conservation entities are taxpayers for Corporate Income Tax purposes. Their income, including membership fees, is not exempt if it derives from an economic activity, as the provision of maintenance and security services involves the organization of production means. The profit resulting from the imputation of income and expenses according to accounting accrual shall be subject to taxation.

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