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V4230-16 3 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

Company A carries out economic activity and may apply the Art. 21 LIS exemption on the sale of its shares

A consulting entity asks whether a subsidiary dedicated to office leasing carries out an economic activity and if the gain from the sale of its shares may be exempt. The DGT determines that outsourced management does not prevent the classification of economic activity and that the exemption is applicable.

The question raised

1. Whether Company A carries out an economic activity and therefore does not have the status of a patrimonial entity. And whether the possible capital gain that could be obtained in the transfer of the shares may qualify for the exemption provided for in Article 21 of the Corporate Income Tax Law.

The DGT's ruling

Company A carries out an economic activity because the management of the real estate property can be subcontracted to third parties without losing said status. As it is not a patrimonial entity, the gain from the transfer of its shares may qualify for the exemption under Article 21 of the LIS. The income eliminated within the tax consolidation group shall be incorporated into the group's tax base upon the transfer of the holding to a third party. The exemption on these incorporated incomes shall not be restricted by paragraph 4.a) of Article 21 of the LIS.

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