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V3526-19 ·23 December 2019 ·consulta-vinculante Medium impact
Tax

Financial assets from excess cash reserves do not turn a company into a patrimonial entity

A query was raised regarding whether a construction company with a large portion of its assets held in cash constitutes a patrimonial entity. The DGT ruled that financial assets accumulated from excess cash reserves arising from ordinary business activities are considered assets tied to that activity.

In 6 key points

How it affects those involved

This ruling clarifies that liquidity held for business purposes does not automatically reclassify a company's legal nature, protecting the distinction between business assets and personal patrimony.

Lifecycle

2019-12-23PublishedPublished 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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