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V4751-16 10 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidades sin fines lucrativos

A limited liability company cannot benefit from the non-profit entity tax regime

A commercial company established for the labour integration of people with disabilities has enquired whether it can apply the tax regime under Law 49/2002. The Directorate General for Tax (DGT) has ruled that, as it is a limited liability company, it does not meet the legal forms required by law.

The question raised

Whether the consulting entity may benefit from the tax regime for non-profit entities and the tax incentives for patronage under Law 49/2002, of December 23, on the tax regime for non-profit entities and tax incentives for patronage.

The DGT's ruling

To be considered a non-profit entity under Law 49/2002, it is necessary to assume one of the legal forms provided for in Article 2 (foundations, public utility associations, NGOs, etc.). A Special Employment Center that takes the form of a limited liability company does not fall within the subjective scope of application of said law. Therefore, it cannot be a beneficiary entity for patronage purposes.

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