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A query was raised regarding whether remuneration for management functions in an entity should be combined with income from an individual economic activity to meet the exemption requirements for Wealth Tax. The DGT ruled that income from an exempt economic activity is not taken into account when determining whether the percentage required for management functions has been met.
This ruling clarifies that income from exempt economic activities does not count towards the threshold required to qualify for the management function exemption in Wealth Tax, potentially limiting the scope for taxpayers to reach the necessary remuneration levels through combined income streams.
The tax team reviews your specific situation.
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