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V4381-16 11 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil companies with commercial purposes and legal personality are subject to Corporate Tax

A query was raised regarding whether a civil law firm should be taxed under Corporate Tax or Personal Income Tax. The DGT ruled that, as it has a commercial purpose and fiscal legal personality, it must be subject to Corporate Tax.

The question raised

Whether, as of January 1, 2016, Corporate Income Tax applies, or whether it remains an entity under the income attribution regime subject to Personal Income Tax, regardless of whether it has been constituted or adapted to Law 2/2007, of March 15, on professional societies.

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 society manifests itself before the Administration through a public deed or a private document provided to obtain the NIF. A commercial purpose implies performing production, exchange, or service activities in a non-excluded sector, excluding professional, agricultural, livestock, forestry, and mining activities.

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