Back to index
V1676-18 13 June 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Management role requirements for Wealth Tax exemption may be met by a family member

The taxpayer asks whether management functions and the calculation of remuneration for Wealth Tax exemption purposes can be fulfilled by a family member, and whether their own agricultural income should be included. The DGT rules that management functions may be performed by a member of the same family group and that income from their own agricultural activity is excluded from the calculation.

The question raised

Whether, for the purposes of the exemption in Wealth Tax, the requirement of exercising management functions by the taxpayer or by any of the members of the kinship group is deemed met, and the calculation of remunerations obtained from the performance of management and executive functions of the Agricultural Transformation Company.

The DGT's ruling

For the exemption of holdings in entities, management functions and their remunerations may be fulfilled by at least one of the persons within the kinship group. For the purpose of calculating whether the management remuneration exceeds 50% of the income, business activity income that constitutes the taxpayer's main source of income is excluded. In this case, income from agricultural activity carried out privately is excluded.

Book your free first meeting