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Practical Manual for Companies 2023.

Box 00066 Asset-holding entity

This box will be checked by entities considered patrimonial entities according to the provisions of article 5.2 of the LIS .

• Concept of patrimonial entity

Regulation: Article 5.2 LIS

A patrimonial entity, and therefore one that does not carry out an economic activity, is understood to be one in which than half of its assets consist of securities or are not affected, 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 of both for the purpose of participating in the production or distribution of goods or services.

In the case of leasing of real estate, it will be understood that there is economic activity only when at least one person employed with a full-time employment contract is used for its management.

In the case of entities that form part of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts, the concept of economic activity will be determined taking into account all those that form part of it.

It should be noted that the value of the assets, securities and assets not related to an economic activity will be that deduced from the average of the quarterly balance sheets of the financial year of the entity, or in the event that it is the dominant entity of a group according to the criteria established in article 42 of the Commercial Code, regardless of the residence and the obligation to prepare consolidated annual accounts, of the consolidated balance sheets. For these purposes, not be counted, where applicable, money or credit rights arising from the transfer of assets assigned to economic activities or securities referred to in the following paragraph, which has been carried out in the tax period or in the two previous tax periods.

Also, will not be counted as values:

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

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

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

  4. Those who grant at least 5 percent of the capital of an entity and are held for a minimum period of one year , for the purpose of directing and managing the participation, provided that the corresponding organization of material and personal means is available, and the participating entity is not included in this section. This condition will be determined taking into account all companies that form part of a group of companies according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare consolidated annual accounts.