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V2774-17 27 October 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Joint ownerships taxed via income attribution if they lack legal personality and commercial purpose for Corporate Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) engaged in electrical installations should be taxed under Corporate Tax or via income attribution. The DGT ruled that, as it is not a civil society possessing legal personality and a commercial purpose, it must continue to be taxed under the income attribution regime.

The question raised

Whether the consulting entity may continue to be taxed under the income attribution regime or must be mandatorily, and by application of Article 7 of Law 27/2014, be a taxpayer for Corporate Income Tax.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must possess legal personality and a commercial purpose. Fiscal legal personality is acquired through a public deed or a private document submitted to the Administration to obtain a Tax Identification Number (NIF). A commercial purpose implies performing production, exchange, or service activities in a non-excluded sector (such as the agricultural or professional sector). In this case, the community of property shall be taxed under the income attribution regime.

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