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Practical Heritage Manual 2020.

For participation in the own funds of agricultural entities

Regulations: Art. 13 ter.Five Consolidated text of the legal provisions of the Autonomous Community of Galicia regarding taxes transferred by the State, approved by Legislative Decree 1/2011, of July 28.

  • Requirements for applying the deduction

    • That among the assets or rights of economic content computed for the determination of the tax base include participations in the own funds of entities whose corporate purpose is agricultural activities.
    • The acquired shares must be maintained in the taxpayer's assets for a minimum period of five years following their acquisition .
    • The agricultural holding must be registered in the Registry of Agricultural Holdings of Galicia. The terms "agrarian exploitation" and "agrarian activity" will be those defined in Law 19/1995, of July 4, on the modernization of agricultural exploitations.
    • Credits granted to the same entities will enjoy the same deduction in the part of the amount that finances said agricultural activities.

      In the case of credits, these must refer to financing operations with a term of more than five years, without the possibility of amortizing an amount greater than 20 percent per year of the amount of the principal lent.

  • Deduction amount

    • 100 percent of the part of the quota that proportionally corresponds to the value of the shares.
    • The value of the shares will be determined , according to the rules of the Wealth Tax, in the part that corresponds to the existing proportion between the assets necessary for the exercise of agricultural activity, reduced by the amount of the debts derived from it, and the value of the entity's net worth.

      To determine this proportion, the value deduced from the accounting will be taken, provided that it faithfully reflects the true financial situation of the company.

  • Incompatibility

    This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial.