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V3515-15 16 November 2015 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Venture capital management companies do not form a group with the entities they manage for IAE purposes, unless control exists

A query is made as to whether management companies of collective investment entities must include the turnover of the venture capital entities they manage when calculating the IAE weighting coefficient. The DGT responds that management or administration does not necessarily imply the existence of a group of companies according to the Commercial Code.

The question raised

Question posed: Whether, for the purposes of applying the weighting coefficient of the Tax on Economic Activities (IAE) to management companies of closed-ended collective investment entities that manage venture capital entities, it is correct that the turnover corresponding to the venture capital entities (whether venture capital companies or venture capital funds) nor that of the companies in which the latter participate, is not taken into account in the calculation of the net amount of the turnover of these companies, as they do not form part of their group.

The DGT's ruling

The performance of management and administration functions of venture capital entities by management companies does not imply that they form a group of companies for IAE purposes. The turnover of the entities shall only be summed if the circumstances of dominance or control provided for in Article 42 of the Commercial Code are present. The application will depend on the specific circumstances of each case.

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