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V2473-17 3 October 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · activo afecto

Financial assets of an intra-group financing company may be considered used for economic activities for Wealth Tax exemption

A query was raised regarding whether the financial assets of a company that finances other entities within its foreign real estate group can be considered used for economic activities to qualify for Wealth Tax exemption. The DGT indicates that they may be considered such if they are used to provide financing on market terms for the acquisition of assets used in the economic activities of the subsidiaries.

The question raised

Whether, for the purposes of the exemption from Wealth Tax, the financial asset of a company integrated into a real estate Group can be considered used, given that its purpose is the financing of the various companies of the Group abroad.

The DGT's ruling

The financial asset intended for financing Group companies under market conditions, for the acquisition of assets used in the economic activities of said companies, may be considered an asset used for the purposes of the exemption provided in Article 4.8.2 of Law 19/1991. Notwithstanding, the assessment of the use of equity elements is the responsibility of the Management Office based on the balance sheet and the circumstances of each case.

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