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V1612-15 26 May 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad patrimonial

Requirements for venture capital funds not to be considered patrimonial entities

A venture capital fund manager inquires whether its funds may apply the exemption for dividends and capital gains without being classified as investment entities. The DGT responds that they are not investment entities if the securities are held to comply with the mandatory investment ratio or legal requirements.

The question raised

Question raised 1. Whether, for the purposes of applying the exemption regulated in Article 21.3 of Law 27/2014, of November 27, on Corporate Income Tax, regarding the income arising from the transfer or redemption of fund shares, the funds are not considered patrimonial entities in accordance with the provisions of Article 5.2 of Law 27/2014, of November 27.

The DGT's ruling

Venture capital funds are not considered investment entities if the securities in their assets are held to comply with legal and regulatory obligations, such as the mandatory investment ratio. For non-resident funds, securities shall not be counted if they are held to comply with the obligations of their regulatory framework. If these securities (including those under Article 5.2.d LIS) constitute at least half of the assets, the fund is not an investment entity. However, for the exemption under Article 21.3 LIS, the remaining requirements must be met.

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