Back to index
V5050-16 21 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · objeto mercantil

Civil companies with a commercial purpose shall be subject to Corporate Tax

A query was raised regarding whether a civil company dedicated to managing property leases should be subject to Corporate Tax or income attribution. The DGT determines that, as it has a commercial purpose and legal personality for tax purposes, it must be subject to Corporate Tax.

The question raised

Question raised: Whether the object of the activity carried out by this civil society is of a commercial nature and must be taxed under Corporate Income Tax, or whether said object is excluded from the commercial scope and will continue to be taxed under the income attribution regime. How can the assets owned by the partners be incorporated into the society? What would be the nature or how would the income received by the partners be classified? Is it possible to apply the 19th transitional provision of the Personal Income Tax Law (LIRPF)? Can the civil society be transformed into a limited liability company under the conditions provided in the 32nd transitional provision of the Corporate Income Tax Law (LIS)? Must the civil society be dissolved and liquidated?

The DGT's ruling

Civil societies with a commercial purpose are taxpayers of Corporate Income Tax. To possess legal personality for tax purposes, they must be constituted by public deed or private document submitted to the Administration to obtain a Tax Identification Number (NIF). A commercial purpose implies performing activities of production, exchange, or provision of services not excluded (such as agricultural, livestock, forestry, mining, or professional activities).

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact