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V0040-17 12 January 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Wealth Tax exemption for holding companies depends on asset composition

A query was raised regarding whether a holding company owned by a married couple can qualify for Wealth Tax exemption. The DGT indicates that to satisfy the economic activity requirement, certain securities that grant voting rights for managing the holding must be excluded from the asset calculation.

The question raised

Whether the exemption in Wealth Tax is applicable.

The DGT's ruling

To access the exemption, the entity must not have the management of movable or immovable property as its main activity. In the case of a holding company, those assets that grant at least 5% of the voting rights and are held to direct and manage the participation, with available material and human resources, shall not be counted as non-business assets. The taxpayer must determine, after excluding these holdings, whether the weight of the non-business assets exceeds half of the total assets.

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