Back to index
V3332-16 15 July 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

Subsidiary entities may use tax consolidation by adapting their tax period only for tax purposes

The inquiry asks whether the effects of the ruling change if the adaptation of the resident entities' financial year to match the group's is delayed until 2018 or 2019. The DGT responds that adapting the tax period exclusively for tax purposes allows for consolidation, regardless of when the financial year is adapted.

The question raised

1) Whether the conclusions of the resolution of the previously submitted Binding Ruling change due to the fact that the adaptation of the financial year of all entities resident in Spain to the standard year of the Group occurs in the 2018 financial year or, exceptionally, in the 2019 financial year, and not in the 2017 financial year as previously indicated.

The DGT's ruling

The tax period of the tax group must coincide with that of the representative entity. Dependent entities may participate in tax consolidation with the representative entity provided they adapt their tax period exclusively for tax purposes to that of said representative entity. This tax adaptation is independent of whether the adaptation of the financial year of the resident entities to the standard year of the group occurs in 2018 or 2019.

Book your free first meeting