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V3781-15 30 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

A branch ceasing activity in 2015 should not be included in the consolidated group

The DGT responds that a branch not constituting a permanent establishment due to closure of activity should not be included in the consolidated group following a change in the dominant entity in 2015.

The question raised

Confirmation that the branch must not be included in the tax group in the first corporate tax period starting from January 1, 2015, provided that its closure proceeds during said tax period.

The DGT's ruling

Even if a branch may meet the requirements to be a dependent entity, its inclusion in a tax group is meaningless if the cessation of its activity in Spain is agreed during the fiscal year. Upon ceasing to be considered a permanent establishment due to said cessation, the branch must not be included in the tax group in the 2015 tax period.

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