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V2322-20 7 July 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · sociedad civil

Wealth Tax exemption for partners in a civil society requires compliance with Art. 4.8.2 of Law 19/1991

A query was raised regarding whether a civil society with legal personality can access the Wealth Tax exemption. The DGT clarifies that it must meet the statutory requirements and explains how to calculate remuneration for management functions when a partner receives payments from multiple entities.

The question raised

Whether the civil society could be exempt from Wealth Tax under section One or section Two of article 4.Eight of Law 19/1991, of June 6, on Wealth Tax.

The DGT's ruling

If the civil society has legal personality, its partners access the exemption by complying with the requirements of article 4.Eight.Two of Law 19/1991. Regarding the requirement of management functions, what is relevant is that the position involves administration, management, or coordination, regardless of its designation. When calculating the percentage of remuneration, if the subject receives compensation from several entities that meet the requirements, the calculation shall be performed separately, excluding the income derived exclusively from management functions in the other entities.

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