Skip to content
Back to index
V4094-15 21 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Agricultural joint ownerships are taxed via income attribution in Personal Income Tax

A query was raised regarding whether a joint ownership (comunidad de bienes) dedicated to agriculture should be taxed under Corporate Tax or the income attribution regime of Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as it carries out an agricultural activity without a commercial purpose, it must continue to be taxed under Personal Income Tax.

The question raised

Whether the aforementioned property community will be subject to Corporate Income Tax as of January 1, 2016, or must remain under the income attribution regime of Personal Income Tax.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must have legal personality and a commercial purpose. Commercial purpose is understood as the performance of production, exchange, or service activities in a sector not excluded from the commercial sphere. Agricultural, livestock, forestry, and mining activities are considered outside the commercial sphere. Therefore, property communities dedicated to agriculture are taxed through the attribution of income to their members under Personal Income Tax.

Book your free first meeting