{"id":10456,"date":"2024-04-15T17:33:10","date_gmt":"2024-04-15T17:33:10","guid":{"rendered":"https:\/\/seegman.com\/application-of-the-reduced-corporate-income-tax-is-rate-of-15-to-dormant-companies-2\/"},"modified":"2025-02-11T23:04:26","modified_gmt":"2025-02-11T23:04:26","slug":"application-of-the-reduced-corporate-income-tax-is-rate-of-15-to-dormant-companies-2","status":"publish","type":"post","link":"https:\/\/seegman.com\/en\/application-of-the-reduced-corporate-income-tax-is-rate-of-15-to-dormant-companies-2\/","title":{"rendered":"Application of the reduced corporate income tax (IS) rate of 15% to dormant companies"},"content":{"rendered":"\t\t
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Application of the reduced corporate income tax (IS) rate of 15% to dormant companies<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Applicability of reduced 15% CIT rate to newly created companies that have remained inactive from incorporation until sale of its shares. Start of activities is crucial.<\/em><\/h5>\n

The General Directorate of Taxes (DGT) in binding consultation V2203-23 of 26 July 2023 analyses the case of Article 29. 1 of Law 27\/2014, of 27 November, on Corporate Income Tax, referring to the 15 % tax rate for newly created companies, in the case of a company incorporated in April 2017, sold in June 2017 to four different legal entities without control over the company, starting the economic activity of real estate development. The company had accrued losses from 2017 to 2021, while with a foreseeable positive taxable base in 2022, due to the sale of one of the real estate developments in July 2022.<\/p>\n

The DGT concludes that the referred company shall be regarded as a \u201cnewly created company\u201d, therefore entitled to the reduced CIT tax rate of 15% in the first year of 2022 provided that: (i) The company was not part of any group from the date of its incorporation in June 2017, in accordance with article 42 of the Commercial Code; (ii) The promotional activity had not previously been carried out by other persons or related entities, in accordance with article 18 CIT Law; (iii) The activity had not previously been carried out by an individual with more than 50% shareholding in the company.<\/p>\n

Read Consulta vinculante V2203-23 de 26 de julio.<\/a><\/em><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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More Technical Articles<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Applicability of reduced 15% CIT rate to newly created companies that have remained inactive from incorporation until sale of its shares. Start of activities is crucial. The General Directorate of Taxes (DGT) in binding consultation V2203-23 of 26 July 2023 analyses the case of Article 29. 1 of Law 27\/2014, of 27 November, on Corporate […]<\/p>\n","protected":false},"author":1,"featured_media":10221,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[99,79,102],"tags":[87],"class_list":["post-10456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all","category-article","category-tax","tag-article"],"yoast_head":"\nApplication of the reduced corporate income tax (IS) rate of 15% to dormant companies<\/title>\n<meta name=\"description\" content=\"Applicability of reduced 15% CIT rate to newly created companies that have remained inactive from incorporation until sale of its shares. Start of activities is crucial.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seegman.com\/en\/application-of-the-reduced-corporate-income-tax-is-rate-of-15-to-dormant-companies-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Application of the reduced corporate income tax (IS) rate of 15% to dormant companies\" \/>\n<meta property=\"og:description\" content=\"Applicability of reduced 15% CIT rate to newly created companies that have remained inactive from incorporation until sale of its shares. 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