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V0057-17 16 January 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Wealth Tax exemption denied if management and remuneration requirements are not met

A query was raised regarding whether shareholders of a limited company can benefit from the Wealth Tax exemption. The DGT ruled that this is not possible because the shareholders do not meet the requirements of performing management functions and receiving specific remuneration.

The question raised

Applicability of the exemption in Wealth Tax.

The DGT's ruling

To access the exemption in Wealth Tax on holdings in entities, the taxpayer must effectively perform management functions and receive remuneration exceeding 50% of their business, professional, and personal labor income. In the case analyzed, none of the seven partners meets this requirement of management and remuneration level established by law.

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