The 15% reduced Corporate Tax rate does not apply to newly created companies within corporate groups

The Supreme Court has established a relevant criterion regarding Corporate Income Tax that directly affects the tax planning of corporate groups.

In a judgment dated March 9, 2026 (appeal no. 7182/2023), the High Court determines that newly created entities that are part of a corporate group cannot apply the 15% reduced tax rate, even if they carry out an activity different from that of the parent company.

The decision reinforces a strict interpretation of Article 29.1 of the Corporate Income Tax Law (CITL) and limits access to this tax incentive designed to promote the creation of independent companies.

The Supreme Court’s criterion: explicit exclusion of groups

The 15% reduced rate in Corporate Income Tax is intended for newly created entities that start an economic activity, applying during the first tax period with a positive taxable base and the following one.

However, Article 29.1 of the CITL establishes several exclusions, including entities that are part of a corporate group as defined in Article 42 of the Commercial Code.

The Supreme Court emphasizes that this exclusion is autonomous and independent from the other limitations set out in the regulation. In other words, it does not depend on whether the new company’s activity matches that of other companies in the group, but solely on its membership in the group.

Consequently, a formally newly created company loses the right to apply the reduced rate if it is part of a corporate group, regardless of its corporate purpose.

 

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Purpose of the regulation: preventing artificial fragmentation of activities

The High Court recalls that the aim of the tax incentive is to promote the creation of genuinely independent companies and to prevent the continuation of existing activities under new corporate structures.

In this regard, the regulation seeks to prevent corporate groups from fragmenting or reorganizing activities through the creation of new companies solely to benefit from a more favorable tax rate.

Therefore, the exclusion of entities belonging to groups is interpreted as a safeguard against potential artificial tax planning structures.

A consistent interpretation with regulatory developments

The Court also supports its decision based on the evolution of the Corporate Income Tax regime itself. From previous regulations to the current 2014 CITL, the legislator has consistently maintained the exclusion of entities within groups as an independent criterion.

This reinforces the idea that the tax benefit is not intended for consolidated business structures, but for truly new and independent business projects.

Practical implications for corporate groups

This criterion has a direct impact on the tax planning of corporate groups. The creation of new companies within a group will not, by itself, allow access to the 15% reduced rate, even if those companies carry out completely different activities.

Companies must take this limitation into account when structuring new business lines or expansion processes, as belonging to a group will be decisive for tax purposes.

How we can help

If you are considering creating a new company or restructuring your corporate group, it is essential to assess in advance the tax and corporate impact of each decision to avoid losing incentives such as the 15% reduced rate in Corporate Income Tax.

At Adlanter, we support you throughout the entire process, from company incorporation to corporate tax planning, helping you make decisions with legal certainty and optimize your tax burden from the outset.

Talk to our team and ensure your corporate structure is aligned with your growth and tax efficiency objectives.