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V4307-16 6 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Community of property taxed via income attribution rather than Corporation Tax

A query was raised regarding whether a community of property engaged in plastering and gypsum activities should be taxed under Corporation Tax or the income attribution regime. The DGT ruled that, as it is not a civil society with legal personality and a commercial purpose, it must remain under the income attribution regime.

The question raised

Whether, as of January 1, 2016, it must be taxed under Corporate Income Tax or must remain under the special regime of income attribution.

The DGT's ruling

To be a taxpayer for Corporate Income Tax, a civil society must possess legal personality and a commercial purpose. Fiscal legal personality is acquired if the entity presents itself to the Administration through a public deed or a private document provided to obtain the Tax Identification Number (NIF). A commercial purpose requires performing activities of production, exchange, or services, excluding agricultural, livestock, forestry, mining, and professional activities. Asset communities do not meet these requirements and are taxed under the regime of income attribution.

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