Doctrine by topic · DGT Observatory

Subsidiary Company: 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 10 rulings · 2014–2026

Current position

The parent company must maintain a shareholding of at least 75% of the capital and the majority of voting rights throughout the entire tax period to apply tax consolidation. In the case of incentives for startups, the condition must be accredited by the group or by each of the companies composing it according to Law 28/2022. For the exemption from the IAE (Business Activities Tax), the turnover of the group of entities as a whole must be considered.

The DGT's position remains stable regarding the requirements for dominance and the maintenance of the shareholding during the fiscal year. Recent rulings do not change the essence of the consolidation regime, but rather apply group concepts to specific regulations such as the IAE or the Startup Law.

Analysis based on 8 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10

V5118-26 6 Jul 2026

To apply reduced tax rate for emerging companies in a consolidated group, the group or each company must meet requirements

SG de Impuestos sobre las Personas Jurídicas

empresa emergenteimpuesto sobre sociedades consolidadogrupo de empresasincentivos fiscalessociedad dominante Ley 28/2022Código de Comercio

Affects CompanyExpat · Non-residentIndividual

V3101-21 13 Dec 2021

Companies in a group must pay IAE if combined turnover exceeds one million euros

SG de Tributos Locales

impuesto sobre actividades económicasgrupo de sociedadescifra de negociosexenciónsociedad dominante TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 82.1.cTRLRHL — RDLeg 2/2004 de Haciendas Locales art. 82.3

Affects CompanyExpat · Non-residentIndividual

V1877-15 15 Jun 2015

Inability to apply tax consolidation if the parent company fails to meet ownership requirements

SG de Impuestos sobre las Personas Jurídicas

consolidación fiscalsociedad dominantesociedad dependienteparticipaciónderechos de voto LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 58LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 58.2

Affects CompanyExpat · Non-residentIndividual

V0772-15 10 Mar 2015

The dissolution of a subsidiary generates income for the parent company, which must be reduced by negative tax bases offset within the group

SG de Impuestos sobre las Personas Jurídicas

consolidación fiscalrentas negativassociedad dominantesociedad dependienteextinción de sociedad TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 7.1.aTRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 15.3

Affects CompanyExpat · Non-residentIndividual

V3341-14 16 Dec 2014

Group fiscal status can be maintained in 2014; dominant entity to make fragmented payments

SG de Impuestos sobre las Personas Jurídicas

sociedad dominantesociedad dependientegrupo fiscalconsolidación fiscalpagos fraccionados TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 65TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 67

Affects CompanyExpat · Non-residentIndividual

V3272-14 4 Dec 2014

Debt forgiveness from a parent company to a second-tier subsidiary results in an increase in equity

SG de Impuestos sobre las Personas Jurídicas

condonación de créditosfondos propiosbases imponibles negativasexplotación económicasociedad dependiente TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 10.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 25.2.c

Affects CompanyExpat · Non-residentIndividual

V3228-14 1 Dec 2014

Fiscal group not extinguished if subsidiary remains dominant and new entity formed

SG de Impuestos sobre las Personas Jurídicas

consolidación fiscalsociedad dominantesociedad dependienteestablecimiento permanenteparticipación indirecta TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 67TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 68

Affects CompanyExpat · Non-residentIndividual

V1940-14 17 Jul 2014

Entity exiting partial spin-off excluded from fiscal group in same tax period

SG de Impuestos sobre las Personas Jurídicas

consolidación fiscalescisión parcialsociedad dominantesociedad dependientegrupo fiscal TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 68.2TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 70.6

Affects CompanyExpat · Non-residentIndividual

V0984-14 7 Apr 2014

Dissolution of a tax group occurs when the parent company loses its status as such

SG de Impuestos sobre las Personas Jurídicas

grupo fiscalsociedad dominantesociedad dependientecanje de valoresconsolidación fiscal TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 67TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 70

Affects CompanyExpat · Non-residentIndividual

V0311-14 10 Feb 2014

Special tax regime for share swaps may apply if legal requirements and valid economic reasons are met

SG de Impuestos sobre las Personas Jurídicas

canje de valoresrégimen especialconsolidación fiscalmotivos económicos válidossociedad dominante TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 67TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 81

Affects CompanyExpat · Non-residentIndividual

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