Skip to content
Back to index
V4762-16 10 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Partnerships with service activities are taxed via income attribution rather than Corporation Tax

A query was raised regarding whether a partnership (comunidad de bienes) providing hairdressing services is liable for Corporation Tax. The DGT ruled that, as it is a partnership and not a civil society with a commercial purpose and fiscal legal personality, it must 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 purposes, a civil society must have a commercial purpose and legal personality for tax purposes. Legal personality is recognized if the agreements are not secret and have been disclosed to the Administration through a public deed or a private document provided for the assignment of the Tax Identification Number (NIF). A commercial purpose implies performing production, exchange, or service activities in a non-excluded sector (such as the agricultural or professional sector). In this case, the community of property continues to be taxed under the income attribution regime.

Book your free first meeting