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V2762-17 26 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships taxed via income attribution rather than Corporation Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) engaged in hospitality activities would be liable for Corporation Tax. The DGT ruled that joint ownerships are taxed under the income attribution regime.

The question raised

Whether the community of property shall be a taxpayer for Corporate Income Tax purposes.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must have a commercial purpose and legal personality for tax purposes. Legal personality is acquired if the agreements are not secret and are disclosed to the Administration through a public deed or a private document provided for the assignment of the NIF. Given that the consultant constitutes a community of property, it shall be taxed under the income attribution regime.

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