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V0351-19 19 February 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Wealth Tax exemption for holdings in VCs based on investment coefficient

A taxpayer has enquired whether a limited company's investment in a venture capital company (VC) qualifies for Wealth Tax exemption. The DGT examines whether the VC carries out a business or wealth management activity and the allocation of its assets.

The question raised

In relation to the investment by the SL in the SCR for the purposes of applying the exemption provided for in Article 4.Eight. Two of Law 19/1991, the following questions are raised:

The DGT's ruling

The values comprising the mandatory investment coefficient of an SCR may be considered assets used for business activity. However, for holdings in ECR that exceed said coefficient, the necessity of the elements for the development of the activity must be assessed according to the Personal Income Tax Law. The delegation of management to an external entity does not exempt the SCR from possessing the material and human resources necessary for the exemption.

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