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V5191-16 30 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · atribución de rentas

Civil societies with livestock activities are not subject to Corporate Tax

A query was raised regarding whether a civil society dedicated to the breeding and fattening of livestock should be taxed under Corporate Tax or through the attribution of income. The DGT ruled that, as it is a livestock activity, it lacks a commercial nature and continues to be taxed under the income attribution regime.

The question raised

Whether this civil society may continue to apply the income attribution regime provided for in the Personal Income Tax Law or will become a taxpayer for Corporate Income Tax with effect from January 1, 2016.

The DGT's ruling

To be a taxpayer for Corporate Income Tax purposes, a civil society must possess legal personality and a commercial purpose. Fiscal legal personality is acquired through a public deed or a private document submitted to the Administration to obtain a Tax Identification Number (NIF). A commercial purpose requires performing production, exchange, or service activities in a non-excluded sector, excluding agricultural, livestock, forestry, mining, and professional activities.

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