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V2089-20 ·23 June 2020 ·consulta-vinculante Medium impact
Tax

Bank balances and securities are not excluded from non-business assets if undistributed profits from the last 10 years cannot be individualised

The taxpayer asks whether assets and bank balances are counted as non-business assets when determining if an entity manages movable or immovable property. The DGT rules that to avoid being classified as non-business assets, they must meet specific exclusion requirements, such as their acquisition cost not exceeding the undistributed profits from the last 10 years.

In 6 key points

How it affects those involved

This ruling affects the classification of assets for wealth tax purposes and the determination of whether an entity's activity is primarily managed through movable or immovable property, based on the ability to distinguish undistributed profits.

Lifecycle

2020-06-23PublishedPublished 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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