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V0095-21 27 January 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención de participaciones

Management income may be calculated separately for Wealth Tax exemptions

A taxpayer holding a 50% stake in two companies and receiving remuneration for director duties in both asks how to calculate their income to meet exemption requirements. The DGT clarifies that, provided all other conditions are met, income from one entity is not aggregated when calculating the percentage for the other.

The question raised

Method of calculating income.

The DGT's ruling

When a person holds shares in several entities, the calculation of remuneration for management functions is carried out separately for each one. To determine whether the remuneration from an entity represents more than 50% of the total income, income derived from management functions exercised in other entities shall not be included. For the purposes of the exemption, the relevant factor is that the position involves functions of administration, management, direction, or coordination, regardless of its designation.

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