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V4439-16 17 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Partnerships engaged in livestock farming are not subject to Corporation Tax

The applicant inquired whether a partnership (comunidad de bienes) engaged in the buying and selling of livestock is liable for Corporation Tax. The DGT ruled that, as it is engaged in livestock farming, it lacks a commercial purpose and continues to be taxed under the income attribution regime.

The question raised

Whether the consulting company will be a taxpayer for Corporate 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. It is considered to have legal personality if its agreements are not secret and it manifests itself before the Administration through a public deed or a private document provided to obtain the NIF. The commercial purpose requires performing activities of production, exchange, or services in a sector not excluded from the commercial scope, excluding agricultural, livestock, forestry, mining, and professional activities.

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