Doctrine by topic · DGT Observatory

Partially Exempt Entities: 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 · 2014–2020

Current position

Partially exempt entities are taxpayers of Corporate Income Tax (IS) and must pay tax on income derived from economic activities or business operations. These entities are required to file a tax return unless they meet specific limits regarding income and non-exempt earnings. Likewise, they may apply the capitalization reserve reduction provided they meet the legal requirements.

The DGT's position remains constant regarding the distinction between exempt income and income from economic activities. Throughout the rulings, it has been reaffirmed that the organization of production means strips the obtained income of its exemption. No doctrinal changes are observed, but rather the systematic application of the regulations to different types of entities.

Analysis based on 15 of 17 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

17
V3668-20 29 Dec 2020

Retention on prize payments required if base exceeds 300 euros

SG de Impuestos sobre las Personas Jurídicas
retencióningreso a cuentaentidades sin fines lucrativosentidades parcialmente exentasatribución de rentas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 4.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.a
Affects CompanyExpat · Non-residentIndividual
V1877-16 27 Apr 2016

Non-exempt companies are required to file Corporate Income Tax returns

SG de Impuestos sobre las Personas Jurídicas
hecho imponibleentidades exentasentidades parcialmente exentasobligación de declararrentas no exentas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 4.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.a
Affects CompanyExpat · Non-residentIndividual
V1072-15 8 Apr 2015

Non-profit association income is exempt if not derived from economic exploitation

SG de Impuestos sobre las Personas Jurídicas
entidades parcialmente exentasobjeto socialexplotación económicaactividad económicaprorrata LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 9.3.a
Affects CompanyExpat · Non-residentIndividual
V0931-15 25 Mar 2015

Labour companies are ineligible for the partially exempt entities regime

SG de Impuestos sobre las Personas Jurídicas
sociedad laboralentidades parcialmente exentasánimo de lucroimpuesto sobre sociedadesentidades sin ánimo de lucro LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 9.3
Affects CompanyExpat · Non-residentIndividual

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