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An entity managing investments through joint account arrangements has queried whether it can apply tax incentives for small businesses. The Directorate General for Taxes (DGT) has ruled that if more than half of its assets consist of securities, it will be classified as a patrimonial entity and will lose access to such incentives.
Entities managing significant portfolios of securities must monitor their asset composition to ensure they maintain their status as active economic entities and retain access to small business tax benefits.
The tax team reviews your specific situation.
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