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2018 Wealth Tax Value of exempt shares

If all of the entity's assets are assigned to the economic activity carried out, the value of the shares will be exempt in their entirety.

However, if in the assets of the entity there are assets and rights that are not affected by the development of the activity, the exemption will only reach the value of the participations in the part that corresponds to the existing proportion between the affected assets lessened in the amount of debts derived from the activity, and the total value of the entity's net worth.

To make this determination, the following formula can be used:

Value of participations*[(Value of assets affected-debts)/Value of net worth]

For the correct application of the aforementioned formula, the following details must be taken into account:

  1. Valuation of shares

    The value of the shares, with or without listing on organized markets, will be determined in accordance with the rules established in article of the Wealth Tax Law, referring to "Shares and participations in the share capital or own funds of other legal entities not traded on organized markets and participations in the capital of cooperatives", discussed in section G4, Section G4.

  2. Valuation of assets and debts

    Both the value of the assets and the debts of the entity will be that which is deduced from the accounting, provided that it faithfully reflects the true financial situation of the entity, said values being determined, in the absence of accounting, in accordance with the Wealth Tax criteria.

  3. Affected heritage elements

    To determine whether or not an asset is subject to an economic activity, the provisions of article 29 of the Personal Income Tax Law will be followed.