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V0242-19 ·6 February 2019 ·consulta-vinculante Medium impact
Tax

Wealth Tax exemptions for unincorporated entities require individual compliance by each participant

A taxpayer inquired whether they could apply for the business activity exemption within an unincorporated entity in which they hold an interest. The Directorate General for Taxes (DGT) ruled that each participant must carry out the activity on a regular, personal, and direct basis, and that it must constitute their primary source of income.

In 5 key points

How it affects those involved

This ruling clarifies that tax benefits for unincorporated entities are not applied collectively to the entity, but must be substantiated by the individual conduct and financial circumstances of each participant.

Lifecycle

2019-02-06PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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