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Practical Handbook for Companies 2021

Box 00066 Asset-holding entity

This box should be ticked by entities considered as asset-holding entities according to Article 5.2 of the LIS.

- Concept of Asset-holding Entity

Regulation: Article 5.2 LIS

An asset-holding entity and which, therefore, does not carry out an economic activity, is understood to be one in which more than half of its assets is made up of securities or is not assigned, in the terms established in article 5.1 of the LIS, to an economic activity.

Economic activity shall be understood as the self-management of the means of production and human resources or one or both of them for the purpose of being involved in the production or distribution of goods or services..

In the case of property rental, , it shall be understood that there is an economic activity only when at least one person with a full-time employment contract is used for its management.

In the case of entities forming part of the same group of companies according to the criteria established in Article 42 of the Commercial Code, irrespective of residence and the obligation to prepare consolidated annual accounts, the concept of economic activity shall be determined taking into account all those forming part of the same group.

It should be borne in mind that the value of assets, securities and assets and liabilities not assigned to an economic activity will be that which is deducted from the average of the quarterly balance sheets for the financial year of the entity, or, if it is the parent of a group according to the criteria established in Article 42 of the Commercial Code, irrespective of residence and the obligation to prepare consolidated annual accounts, from the consolidated balance sheets.For these purposes , the money or credit rights from the transfer of assets assigned to economic activities or securities referred to in the following paragraph, which have been carried out in the tax period or in the two previous tax periods, shall not be computed, where applicable.

In addition, will not be counted as values:

  1. Those held to comply with legal and regulatory obligations.

  2. Those that incorporate credit rights arising from contractual relations established as a consequence of the development of economic activities.

  3. Those held by securities companies as a result of the exercise of the activity constituting their object.

  4. Those that grant at least 5 per cent of the capital of an entity and are held for at least one year, for the purpose of directing and managing the holding, provided that the corresponding organisation of material and personal resources is in place, and the investee is not included in this section.This condition shall be determined by taking into account all companies forming part of a group of companies according to the criteria laid down in Article 42 of the Commercial Code, irrespective of residence and irrespective of the obligation to draw up consolidated annual accounts.