Who are my related subjects?
RELATED SUBJECTS (Tax Code)
Article 199-C.- For the purposes of the provisions of this code and other tax laws, the following shall be understood as related subjects:
a) when one of them directs or controls the other, or owns, directly or indirectly, at least 25% of its share capital or its voting rights;
b) when five or fewer people direct or control both people, or jointly own, directly or indirectly, at least 25% of the share capital or voting rights of both people;
c) when they are companies that belong to the same decision-making unit or business group. In particular, two companies are part of the same decision-making unit or business group if one of them is a partner or participant in the other and is related to it in any of the following situations:
i) holds the majority of the voting rights;
ii) has the power to appoint or remove the majority of the members of the administrative body;
iii) may have, by virtue of agreements entered into with other partners, the majority of the voting rights;
iv) has appointed exclusively with their votes the majority of the members of the administrative body; and,
v) the majority of the members of the board of directors of the controlled company are members or managers of the board of directors of the parent company or of another company controlled by it.
when two companies are each part of a decision-making unit or business group with respect to a third company, in accordance with the provisions of this literal, all these companies will integrate a decision-making unit or business group;
d) For the purposes of the preceding paragraphs, it is also considered that a natural person has a share in the capital stock or voting rights, when the ownership of the share directly or indirectly corresponds to the spouse or person linked by family relationship in direct or collateral line, by consanguinity up to the fourth degree or by affinity up to the second degree;
e) in a union of persons, de facto partnership or business collaboration contract or an association contract in participation, when any of the contracting parties or associates participate directly or indirectly in more than 25% percent in the result or utility of the contract or of the activities derived from the association;
f) a person domiciled in the country and a distributor or exclusive entity of the same residing abroad;
g) a distributor or exclusive agent domiciled in the country of an entity domiciled abroad and the latter;
h) a person domiciled in the country and his foreign supplier, when he makes purchases, and the volume represents more than fifty percent (50%);
i) a person residing in the country and their permanent establishments abroad; and,
j) a permanent establishment located in the country and its headquarters or parent company residing abroad, another permanent establishment of the same or a person related to it.