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V3200-18 14 December 2018 · SG de Tributos Locales Criterion in force
OTRO · hecho imponible

Foundations must pay tax on each economic activity carried out independently

A foundation sought clarification on whether heading 966.9 was appropriate for its various research, training, and event activities. The DGT ruled that the entity must register and pay tax for each specific activity based on its individual nature.

The question raised

It is desired to know whether the cited heading is the correct one for the activities that the Foundation will carry out.

The DGT's ruling

The entity is subject to the Tax on Economic Activities for each activity it carries out through the organization of production means and human resources. It does not pay tax for the promotion of topics or management of subsidies, but it must use different headings for research, teaching, event organization, publishing of books or audiovisual material. The payment for one activity exclusively authorizes the exercise of that activity.

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