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V5187-16 30 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · residencia fiscal

Move of fiscal residence to abroad ends tax period

The consultant asks about the tax treatment of the company and its shareholders following the relocation of its registered office and effective management base to the United States. The DGT states it cannot comment on shareholders and that the change of fiscal residence of the entity concludes its tax period.

The question raised

Whether, as a consequence of the corporate operation by which the taxpayer would transfer its registered office to the United States, there would be taxation at the level of the taxpayer and of the shareholders, both natural persons and legal entities, for Personal Income Tax and Corporate Income Tax respectively.

The DGT's ruling

The transfer of domicile and effective management seat to the USA, involving a change in the lex societatis and the loss of connection with the Spanish legal system, entails the loss of tax residence in Spain. This change determines the conclusion of the tax period. If the assets in Spain remain assigned to a permanent establishment, their tax values shall be maintained without integrating income into the tax base pursuant to Article 19.1 of the LIS.

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