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V0341-20 13 February 2020 · SG de Tributos Criterion in force
OTRO · declaración informativa

Obligation to submit foreign assets declaration remains even without prior valuation

A U.S. LLC shareholder asks whether they must submit the foreign assets declaration if they cannot determine the value of their shares. The DGT responds that the obligation continues and that the absence of a balance sheet does not prevent determining the value by preparing one.

The question raised

If a value for the holdings cannot be determined, is there an obligation to submit the Informative Return on Assets and Rights Held Abroad?

The DGT's ruling

The obligation to submit the informative return on assets and rights held abroad exists provided that no legal exceptions apply. To value holdings in an entity not traded on organized markets, the Wealth Tax Law must be applied. If the balance sheet has not been audited, the valuation shall be the highest of three values: the nominal value, the theoretical value of the last approved balance sheet, or the result of capitalizing the average profits of the previous three financial years at a rate of 20%. The absence of a balance sheet does not prevent the preparation of one to identify the theoretical value.

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