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V3247-17 18 December 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil societies managing pharmacies taxed under Personal Income Tax rather than Corporate Tax

A query was raised regarding whether a civil society engaged in pharmacy activities is subject to Corporate Tax. The DGT ruled that, as health regulations prevent such entities from being owners of a pharmacy, the entity lacks a commercial purpose and must instead be taxed under Personal Income Tax.

The question raised

1) Whether the civil society is a taxpayer for Corporate Income Tax.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must have legal personality before the Administration and a commercial purpose. However, the activities of pharmacy offices legally correspond to the pharmacist owner and cannot be exercised by a commercial company. Therefore, the income from a pharmacy office is taxed under Personal Income Tax, either individually or through the attribution of income.

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