Doctrine by topic · DGT Observatory

Remuneration: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 9 rulings · 2014–2017

Current position

To access the exemption in Wealth Tax and the reduction for donations, the subject must perform management functions in the entity from which the shares are donated and receive remuneration for said functions that exceeds 50% of their total income. It is not necessary for the remuneration to be paid directly by the entity where the functions are performed, provided that it is expressly stated in the bylaws. The exercise of management functions in a subsidiary does not allow for the application of the exemption regarding the parent company.

The DGT's position remains constant in the interpretation of the requirements for management functions and remuneration for the exemption. It has been reiterated that the remuneration may be paid by an entity different from the one where the position is held, provided that it is provided for in the bylaws. The doctrine confirms that the exemption is specific to the parent company and does not extend through the mere exercise of positions in subsidiaries.

Turning points

  1. V0158-14

    Establishes that the remuneration does not need to be paid by the entity itself subject to the exemption, provided that it is stated in the bylaws.

  2. V2294-15

    Specifies that the exercise of management functions in a subsidiary is not sufficient for the exemption in the parent company.

Analysis based on 9 of 9 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

9
V2452-17 3 Oct 2017

Exemption and donation reduction not applicable

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
exenciónfunciones de direcciónremuneraciónholdingreducción por donación LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.Ocho.dosReal Decreto 1704/1999
Affects CompanyExpat · Non-residentIndividual
V0580-14 5 Mar 2014

Inapplicability of the 95% Inheritance Tax reduction due to failure to meet Wealth Tax exemption requirements

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción en la base imponibleexención en el impuesto sobre el patrimoniofunciones de direccióndonación de participacionesentidad mercantil LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.6LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.Ocho.Dos
Affects CompanyExpat · Non-residentIndividual

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