Specific tax regime that allows groups of companies to be taxed for corporate income tax (CIT) on the consolidated profit of the group. A group is understood to be the set of resident companies in Spanish territory formed by a dominant company and the dependent companies on it, which meet certain requirements regarding the degree of control and permanence. The regime, once agreed, is applied for three consecutive tax periods, extendable to another three. Fiscally, it is an advantageous regime, as it allows for the offsetting of positive and negative results obtained within the group and other practices that imply a deferral or tax savings. Both the dominant and subordinate companies must meet the conditions established by law in order to opt for this regime.
« Back to Glossary IndexConsolidated taxation
« Back to Glossary Index