Doctrine by topic · DGT Observatory

Control: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 17 rulings · 2015–2026

Current position

Newly created entities carrying out economic activities may apply the reduced rate of 15% during the first two periods with a positive base. This benefit is excluded if the entity is part of a group of companies pursuant to Article 42 of the Commercial Code. The group status must be specifically verified in the first tax period with a positive base and in the immediately following one.

The DGT's position remains constant regarding the exclusion of entities that form part of groups under Article 42 of the Commercial Code for the reduced rate. Throughout the rulings, it has been specified that the existence of a group is determined by control and unity of decision-making. The latest ruling adds that the group status must be analyzed in each of the two periods during which the benefit is applied.

Turning points

  1. V1610-16

    Specifies that control is determined by the power to direct financial and operating policies, distinguishing between subordination groups and coordination groups.

  2. V5236-26

    Establishes that the group status must be analyzed specifically in the first tax period with a positive base and in the immediately following one.

Analysis based on 16 of 17 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

17
V5236-26 23 Jul 2026

New entities may apply 15% reduced rate if criteria met and not part of a group

SG de Impuestos sobre las Personas Jurídicas
entidad de nueva creacióntipo reducidobase imponible positivaactividad económicagrupo de sociedades LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2
Affects CompanyExpat · Non-residentIndividual
V0816-26 13 Apr 2026

No reduced IS rate for new entities if part of a group

SG de Impuestos sobre las Personas Jurídicas
entidades de nueva creacióntipo de gravamen reducidogrupo de sociedadesinicio de actividadsucesión de actividad LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 18
Affects CompanyExpat · Non-residentIndividual
V0059-26 13 Jan 2026

Cannot apply 15% reduced tax rate or unlimited loss carryforward due to group status

SG de Impuestos sobre las Personas Jurídicas
entidad de nueva creacióntipo de gravamen reducidocompensación de bases imponibles negativasgrupo de sociedadescontrol LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 18
Affects CompanyExpat · Non-residentIndividual
V2487-22 1 Dec 2022

Entities joining a group lose eligibility for the new company reduced tax rate

SG de Impuestos sobre las Personas Jurídicas
entidad de nueva creacióntipo reducidoactividad económicagrupo de sociedadescontrol LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29.1
Affects CompanyExpat · Non-residentIndividual
V3039-21 7 Dec 2021

New entities cannot apply the reduced tax rate if they are part of a corporate group

SG de Impuestos sobre las Personas Jurídicas
entidades de nueva creacióntipo de gravamen reducidogrupo de sociedadescontrolactividad económica LIS — Ley 27/2014 del Impuesto sobre Sociedades art. DT 22ªTRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. DA 19ª
Affects CompanyExpat · Non-residentIndividual
V2689-21 8 Nov 2021

Reduced 15% rate cannot be applied if the entity is part of a business group

SG de Impuestos sobre las Personas Jurídicas
entidades de nueva creacióntipo reducidogrupo de sociedadescontrolactividad económica LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2
Affects CompanyExpat · Non-residentIndividual
V1953-21 21 Jun 2021

Societies in a group cannot apply 15% tax rate

SG de Impuestos sobre las Personas Jurídicas
entidad de nueva creacióntipo reducidogrupo de sociedadescontrolactividad económica LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 18
Affects CompanyExpat · Non-residentIndividual
V2146-19 13 Aug 2019

15% reduced rate inapplicable if company is part of a corporate group

SG de Impuestos sobre las Personas Jurídicas
entidad de nueva creacióntipo reducidogrupo de sociedadesactividad económicacontrol LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29.1Código de Comercio
Affects CompanyExpat · Non-residentIndividual

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