8.1.1.1. Entities in the income allocation system

Entities under the income attribution regime (art. 8.3 and 87 of the Law)

Income from civil companies that are not subject to corporate tax, whether or not they have legal personality, unclaimed estates, community property and other entities referred to in article 35.4 of Law 58/2003, of December 17, General Tax Law, will be attributed to the partners, heirs, co-owners or participants, respectively, in accordance with the rules of Personal Income Tax.

The income attribution regime will be applicable to entities established abroad whose legal nature is identical or analogous to that of income attribution entities established in accordance with Spanish laws.

The income allocation regime will not be applicable to agricultural transformation companies, investment funds of Collective Investment Institutions, Temporary Business Associations, Pension Funds and communities that own local forests.

Entities under the income attribution regime will not be subject to corporate tax

Qualification of attributed income (art. 88)

The income of entities under the income attribution regime attributed to partners, heirs, commoners or participants will have the nature derived from the activity or source from which they come.