Back to index
V4087-15 21 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · consolidación fiscal

Subsidiary entities with different accounting periods join the tax group on their period start date

A query was raised regarding when subsidiary entities that meet the dependency requirements, but were not previously part of the group, must join the tax group. The Directorate General for Taxes (DGT) clarifies that entities with a tax period running from 1 April to 31 March join the group with effect from 1 April.

The question raised

1) Whether, pursuant to paragraph 2 of the Twenty-fifth Transitional Provision of Law 27/2014, of November 27, on Corporate Income Tax, the incorporation of entities U and P into the tax group occurs on April 1, 2015, insofar as both entities meet the requirements for mandatory inclusion as subsidiary entities of the tax group.

The DGT's ruling

Entities that acquire the status of subsidiaries pursuant to the LIS must be integrated into the tax group in the first tax period commencing on or after January 1, 2015. If the tax period of the subsidiary entity runs from April 1 to March 31, its incorporation into the tax group takes effect from April 1. The tax period of the group must coincide with that of the representative entity, requiring subsidiaries to close their fiscal year on the same date.

Book your free first meeting