Doctrine by topic · DGT Observatory

Commencement of Activity: 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 35 rulings · 2014–2026

Current position

The commencement of professional activity occurs when deliveries, services, acquisitions of goods or services, collections, payments, or the hiring of personnel are carried out with the purpose of intervening in production or distribution. Expenses accrued prior to this moment are not deductible from net income. In specific sectors such as photovoltaic energy production, registration and taxation must take place when effective production begins, excluding construction or licensing phases.

The DGT's position remains constant in defining the commencement of activity as the moment when acts with an economic purpose are performed. A rigorous application of the non-deductibility of expenses prior to registration is observed, as confirmed in rulings V1302-17 and V5268-26. The doctrine also specifies that the intention to use assets for business purposes must be proven with objective elements to allow for deductions prior to formal commencement.

Turning points

  1. V0870-25

    Specifies that in photovoltaic energy production, the commencement of activity occurs with the effective production of energy, excluding the construction phase or administrative procedures.

Analysis based on 35 of 35 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
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
V2705-21 8 Nov 2021

Retention of IRPF on professional service invoices depending on payer type

SG de Impuestos sobre la Renta de las Personas Físicas
retenciónrendimientos de actividades profesionalesobligado a retenertipo de retencióningresos íntegros RIRPF — RD 439/2007, Reglamento del IRPF art. 74RIRPF — RD 439/2007, Reglamento del IRPF art. 75
Affects CompanyExpat · Non-residentIndividual

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