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V2197-17 29 August 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Wealth Tax exemption requires management remuneration to exceed 50% of total income (subject to exclusions)

A query was raised regarding how to calculate remuneration to satisfy the management functions requirement for Wealth Tax exemption. The DGT clarifies that management remuneration must represent more than 50% of business, professional, and personal work income, excluding only those derived from exempt business activities.

The question raised

Calculation of remuneration for the purposes of the exemption in the Wealth Tax

The DGT's ruling

For the exemption, the remuneration for management functions must exceed 50% of the total business, professional, and personal labor income. Only business activity income that is already exempt from the tax is excluded from the calculation. If the income from a non-exempt activity exceeds the management remuneration, the requirement is not met.

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