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V4687-16 4 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · atribución de rentas

Jointly owned agricultural entities taxed under Personal Income Tax rather than Corporate Tax

A query was raised regarding whether a jointly owned agricultural entity should be taxed under Corporate Tax or Personal Income Tax (IRPF) from 2016 onwards. The Directorate-General for Tax (DGT) ruled that, due to its lack of legal personality, it continues to be taxed under the income attribution regime for Personal Income Tax.

The question raised

Whether in the year 2016 it will continue to be taxed under Personal Income Tax or will be subject to Corporate Income Tax.

The DGT's ruling

Civil societies with a commercial purpose are taxpayers of Corporate Income Tax, but agricultural, livestock, forestry, and mining activities are considered outside the commercial scope. To have legal personality for tax purposes, the civil society must manifest itself before the Administration through a public deed or a private document provided to obtain the NIF. As the consulting entity is a shared ownership without legal personality, it continues to be taxed under the income attribution regime in Personal Income Tax.

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