In order to determine whether our turnover reaches 6MM euros, above which a company must pay business tax, it is necessary to compute the turnover at the level of the group of companies.
Indeed, if a company belongs to a group of companies within the meaning of Article 42 of the Commercial Code, it is not its individual turnover that must be taken into account to determine whether the company must pay IAE tax. It will be the turnover of the group as a whole that determines whether each of its companies is taxed under the IAE or, on the contrary, is exempt from the tax.
The question has been raised as to whether this exercise should only be carried out in groups that are required to consolidate. In this regard, judgment of the TSJ of Catalonia of 2013.
In our opinion, the group turnover as a whole should be considered even if there is no obligation to consolidate. However, when calculating the group turnover, it should be the turnover after consolidation (eliminating, for example, intra-group transactions).
Another debated issue is whether the turnover of group companies that are not resident in Spain should be consolidated. In this case our opinion is contrary, as the tax is levied on the development of an activity in national territory.