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V3959-15 14 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad urbanística de conservación

Urban conservation entities are subject to Corporate Tax due to carrying out economic activities

A green area urban conservation entity inquired whether it was required to register for economic activities and its tax exemption status. The DGT has determined that it is subject to Corporate Tax because it carries out an economic activity and must register for the Business Activity Tax (IAE) based on the services it provides.

The question raised

Whether the entity must register in the corresponding economic activity.

The DGT's ruling

The entity is a taxpayer for Corporate Income Tax and its income from maintenance services is not exempt as it constitutes an economic activity. Regarding VAT, operations involving the maintenance of spaces under public domain and use are exempt, but those involving private spaces are not. The entity must register in the Census of Businessmen and in the Tax Administration on Economic Activities (IAE) according to the activity performed.

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