Skip to main content

Special system of the group of entities

Skip information index

Which is the parent company?

The parent company is considered to be that which meets the following requirements:

  1. It has its own legal personality. The permanent establishments located in the tax's territory of application can also have the condition of parent company.

  2. It has a direct or indirect stake of at least 50% of the capital of the other company/companies.

    As of 1 January 2015, it must have the effective control over companies in the group, through a direct or indirect stake of at least 50% of their capital or voting rights.

  3. Said stake must be maintained throughout the calendar year.

  4. It is not a subsidiary of another company established in the tax's territory of application that meets the requirements needed to be considered parent company. 

As of 1 January 2015, trading companies that do not act as businesspersons or professionals can be considered parent companies.