4.2.8.2. Value of exempt shares

If the entire assets of the entity are allocated to the economic activity carried out, the value of the shares will be fully exempt.

However, if the entity's assets contain assets and rights that are not related to the development of the activity, the exemption will only apply to the value of the shares in the part that corresponds to the proportion existing between the affected assets reduced by the amount of the 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 shares*[(Value of affected assets-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, whether or not listed on organised markets, will be determined in accordance with the rules established in article 16.1 of the Wealth Tax Law, referring to "Shares and interests in the share capital or equity of other legal entities not traded on organised markets and interests in the capital of cooperatives", discussed in section G4, Section G4.

2. Valuation of assets and debts

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

3. Affected heritage elements

   To determine whether or not an asset is affected by an economic activity, the provisions of Article 29 of the Personal Income Tax Law will apply.