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V2461-19 16 September 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

Exemption on transfer of shares may be limited if the investee company is a patrimonial entity

A holding company has enquired whether its accommodation, construction, and agricultural activities allow it to cease being classified as a patrimonial entity. The DGT states that this depends on the specific facts and whether its assets are dedicated to said activities, warning that if the investee company is a patrimonial entity, the exemption on the transfer of shares will be limited to undistributed profits.

The question raised

Whether, according to the activities carried out by entity B, it can be considered to be performing an "economic activity" for the purposes of Article 5 of the LIS and, consequently, the aforementioned entity would not be considered "patrimonial".

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