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V3614-16 24 August 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · impuesto sobre el patrimonio

Share valuation for companies in insolvency proceedings must consider fair value

A query was raised regarding how to value shares of a public limited company undergoing insolvency proceedings for Wealth Tax purposes. The DGT indicates that the legal criteria must be integrated with the concept of fair value as defined in the Insolvency Law.

The question raised

Valuation for Wealth Tax purposes of shares in a Public Limited Company in insolvency proceedings.

The DGT's ruling

For shares of unlisted entities, Article 16.One of Law 19/1991 establishes the theoretical value as the last balance sheet with a favorable audit or the highest value among the nominal value, the theoretical value, or the capitalization of profits. Notwithstanding, this criterion must be combined with the fair value defined in Article 94.5 of the Insolvency Law, which may be determined by means of a report from an independent expert.

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