{"id":13683,"date":"2019-06-14T08:43:32","date_gmt":"2019-06-14T06:43:32","guid":{"rendered":"https:\/\/etl-ilia.es\/general\/impuesto-sociedades-grupos-empresas\/"},"modified":"2022-05-26T17:14:28","modified_gmt":"2022-05-26T15:14:28","slug":"corporate-tax-company-groups","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/tax-advice-blog\/corporate-tax-company-groups\/","title":{"rendered":"Corporate tax: company groups"},"content":{"rendered":"

With the evolution of business activities, the creation of commercial companies has been accompanied by the configuration of groups of companies in which there is a parent company and a series of related companies. In this post, we want to focus on the groups of companies and the incidence of Corporate Tax<\/strong>.<\/p>\n<\/div><\/div><\/div><\/div><\/div>

What is a group of companies or entities?<\/strong><\/h2>\n

We speak of a group of companies or entities when a dominant entity and a series of dependent entities exist. The link between the companies occurs in the financial, economic and organisational spheres.<\/p>\n

The controlling entity will be the one that meets the following requirements:<\/p>\n

    \n
  • Have their legal personality and be subject to and not exempt from Corporate Income Tax<\/strong>.<\/li>\n
  • Hold a direct or indirect holding of at least 75% of the share capital of the other dependent companies, representing the majority of the voting rights.<\/li>\n
  • Maintain your participation and voting rights during the tax period.<\/li>\n
  • Not be dependent on another entity.<\/li>\n<\/ul>\n

    Groups of companies have been used for various purposes:<\/p>\n

      \n
    • Limitation of liability to third parties.<\/li>\n
    • Expansion beyond the country of origin.<\/li>\n
    • The diversification of activities.<\/li>\n
    • The need to attract investors.<\/li>\n<\/ul>\n

      The advantage of groups of companies in Corporate Tax<\/strong><\/h2>\n

      In addition to the purposes that we have seen, other aspects taken into account when forming groups of companies are the tax advantages.<\/p>\n

      In the case of Corporation Tax<\/strong>, when specific requirements are met, they may benefit from the fiscal consolidation regime, which implies the waiver of the applicable individual regime, to be able to pay taxes as a group of companies that represent a single taxpayer.<\/p>\n

      The tax base for the group Corporation Tax<\/strong> is calculated by adding the individual tax bases of the group entities considering the following issues:<\/p>\n

        \n
      • The financial expense deduction limit refers to the tax group.<\/li>\n
      • The capitalisation reserve, the levelling reserve, or the provisions of article 11.12 of the Corporation Tax Law<\/strong> are not included.<\/li>\n
      • Negative tax bases corresponding to the entity in its individual regime will not be offset.<\/li>\n<\/ul>\n

        For the presentation of the IS<\/strong>, aspects such as:<\/p>\n

          \n
        • The tax period, which will be in that of the representative entity.<\/li>\n
        • The tax rate will also be that of the representative entity unless a credit entity is in the group.<\/li>\n
        • The deductions and bonuses will be those that exist in the general regime.<\/li>\n
        • The parent company must present the settlements of instalment payments in the IS.<\/li>\n
        • The withholdings that all the entities that are part of the group have borne.<\/li>\n<\/ul>\n

          However, not only does the parent entity have formal obligations for IS, but the dependent entities must also present the corresponding self-assessment.<\/p>\n<\/div><\/div><\/div><\/div><\/div>