## [Tax Newsletter - July 2018 | Rulings](/en_GB/new/tax-newsletter-july-2018-rulings) # Tax Newsletter - July 2018 | Rulings Spain - 07 / 30 / 2018 [TAX NEWSLETTER - JULY 2018](http://www.garrigues.com/en_GB/new/tax-newsletter-july-2018 "boton-newsletter") - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/tax-newsletter-july-2018-rulings) - []() - []() Previous Next Corporate income tax **The capitalization reserve for tax groups is not calculated simply by aggregating the equity of the companies in the group** *Directorate General for Taxes. Ruling V1836-18, of July 22, 2018* The DGT has issued a ruling in which it changed one of its interpretations in relation to use of the capitalization reserve in tax groups. Among other findings, it affirmed that, to determine the increase in equity, after aggregating the increases in equity at each of the companies in the group, the applicable eliminations and inclusions of internal income and expenses need to be made. Corporate income tax **Two part-time employees do not equal one full-time employee** *Directorate General for Taxes. Ruling V1436-18 of May 29, 2018* The leasing of real estate may be regarded an economic activity if at least one employee is engaged full-time under an employment contract for the purpose of organizing the activity. This requirement is not met, however, by having two or more workers under part-time employment contracts. At least one of the employees must have a full-time employment contract. Personal income tax **Leased student housing properties are allowed to benefit from the reduction to rent** *Directorate General for Taxes. Ruling V1236-18 of May 11, 2018* The DGT’s general interpretation is that the 60% reduction for residential leases is not applicable to seasonal leases. In the case of student housing properties, it may be regarded they do not involve seasonal leases if, as occurred in the specific case examined, the rent is agreed for a term longer than a year and the property is provided primarily to satisfy the student’s permanent need for housing over the academic year. 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