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V4793-16 10 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · sociedad civil

Civil societies engaged in livestock farming are not subject to Corporate Tax

A civil society dedicated to livestock farming has requested clarification on whether it must pay Corporate Tax. The DGT has ruled that, as livestock farming is considered outside the scope of commercial activity, the entity is not a taxpayer for this tax.

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 a commercial purpose, understood as the performance of production, exchange, or service provision activities for the market in a non-excluded sector. Agricultural, livestock, forestry, mining, and professional activities are excluded from the commercial scope. Therefore, a livestock civil society is not a taxpayer for Corporate Income Tax and shall be taxed under the income attribution regime in Personal Income Tax.

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