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V1289-22 7 June 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · actividad económica

Pledged financial assets may be deemed business assets if their necessity for generating income is proven

A query was raised regarding whether financial assets pledged by a holding company to secure financing for investment in another company can be considered assets tied to its economic activity. The DGT indicates that they may be considered such if it is demonstrated that they are necessary for the entity to obtain its income.

The question raised

Assuming that the participation in the SCR were considered a business asset and necessary for the performance of the activity of company H, whether the financial assets pledged by company H to obtain financing intended for investment in the SCR could be considered assets necessary for the development of the economic activity of company H.

The DGT's ruling

Pledged financial assets, as being representative of the transfer of capital to third parties, may be considered used for business purposes provided they are necessary for obtaining the entity's income. There is no general legal criterion to qualify the business use based on the nature of the element, therefore necessity must be assessed on a case-by-case basis. Factors such as the need for capitalization, solvency, liquidity, or access to credit do not, in themselves, oppose the concept of business use.

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