Aspects to analyse in civil companies
How the first balance sheet is drawn up and how transitional income is processed. Remuneration of working partners and deductibility of expenditure
Civil companies with a commercial purpose are taxpayers of Corporate Tax under the same conditions as any other taxpayer, and may benefit from the special regimes regulated in Title VII of the LIS if they meet the established requirements. for each of the regimes established there.
Therefore, all the articles of the LIS will apply to them regarding the determination of the tax base, temporal imputation, computable income, deductible and non-deductible expenses, types of taxation, deductions, installment payments, etc.
Below we present two issues that have generated doubts in civil societies:
Regarding the preparation of the first balance sheet, as taxpayers of the Corporate Tax, it must be taken into account that the fourth section of the thirty-second transitional provision of the LIS, provides that in the case of civil companies taxpayers of the Corporate Tax Companies will be understood that as of January 1, 2016, for tax purposes, all of their own funds are made up of contributions from the partners, with the limit of the difference between the value of the property, plant and equipment and real estate investments, reflected in the corresponding books. records, and the required liabilities, unless the existence of other assets is proven.
The shares as of January 1, 2016 in the civil society acquired prior to said date, will have the acquisition value as derived from the provisions of the previous paragraph.
The entity must only include tangible fixed assets and real estate investments in its assets, if they were included in its investment property record book in the year prior to January 1, 2016, because they are its ownership.
The tax effects of the change from being taxed as an entity attributing income to as a IS taxpayer, both for the company and its partners, are the following:
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Accrued income : In the case of income whose imputation criterion has been determined according to the rules of Personal Income Tax , in particular, the criterion of demandability and not the criterion of accrual, when, on the contrary, once The company becomes a taxpayer of IS, all the income that is integrated into its tax base is determined according to the accrual principle. Therefore, it is possible that there is income that has been accrued during the period of time in which the company has been taxed according to the income attribution regime and, therefore, has not been attributed to the partners of said company, since have not yet been payable, in these situations, the LIS establishes that such income is integrated into the tax base of the civil society of the first tax period in which the company becomes taxed according to the general regime, that is, in the first period tax started as of 1-1-2016.
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Unearned income : This case responds to income whose imputation criterion has been determined according to the taxability criterion of the IRPF and, therefore, has been attributed to the partners of the civil society, but has not been accrued according to the IS criterion, so that when The company becomes a taxpayer of the IS, the accrual of the same would take place which would imply a double taxation on such income. To avoid these situations, a special rule is established by which the income that has been integrated into the tax base of the civil society in application of the income attribution regime is not integrated again into that company on the occasion of its accrual.
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Increase in value of goods : The elements that make up the assets of civil society that incorporate latent capital gains at the time of the change to the general regime have not been integrated into the tax base of the company because they have not yet been generated, so that if these capital gains become evident When the civil society is taxed according to the general regime, all of them would be integrated into the tax base of the company and be taxed at the general rate, even though part of them were generated in previous periods in which the company was taxed according to the general regime. attribution regime.
All accounting expenses will be fiscally deductible expenses, for the purposes of Corporate Tax, provided that they comply with the legally established conditions, in terms of accounting registration, imputation according to accrual, correlation of income and expenses, and documentary justification, provided that their valuation is carried out at market value, in accordance with the provisions of article 18 of the LIS and that is not considered a tax-deductible expense due to the application of any specific precept established in the LIS.
At this point, it is worth mentioning the provisions of article 15 of the LIS: Non-deductible expenses include: e) Donations and liberalities. Remuneration to administrators for the performance of senior management functions, or other functions derived from an employment contract with the entity, will not be understood to be included in this letter e).
By virtue of all of the above, the expense corresponding to the services provided by the working partner, for the performance of ordinary tasks other than those inherent to the position of administrator, will be considered a tax deductible expense, as long as said expense meets the requirements. legally mentioned above and in particular said remuneration has been valued at market value in the terms of article 18 of the LIS.