5. Values representative of the participation in the own funds of any type of entity

Regulations: Articles 15 and 16 Wealth Tax Law

Shares and participations in the capital stock or own funds of legal entities, Companies and Investment Funds have such consideration.

These securities, with the exception of shares and participations in Collective Investment Institutions, may be exempt from tax if the owner thereof meets the requirements established for this purpose and which are discussed in the section relating to exemptions. in Chapter 2 of this Manual. Whether or not they are exempt, these values must be included in the corresponding section of the declaration, valued in accordance with the following rules:

Remember: The concept of “organized markets” referred to in Article 15 of Law 19/1991 is broader than that of the official secondary market or regulated market and includes the so-called multilateral trading systems, such as the Alternative Stock Market.

A. Shares and participations in the capital stock or in the equity fund of Collective Investment Institutions (Companies and Investment Funds), traded in organized markets

Shares and participations in the capital stock or equity fund of Collective Investment Institutions traded in organized markets must be computed at their net asset value on the date of accrual of the tax (December 31 ), valuing the assets included in the balance sheet in accordance with the rules contained in its specific legislation and the obligations towards third parties being deductible.

To facilitate the correct application of this valuation rule, entities are required to provide their partners, associates or participants with a certificate stating the valuation of their respective shares and participations.

B. Shares and participations in the share capital or equity of any other legal entities, traded on organized markets

Shares and participations in the capital stock or equity of any legal entities, traded in organized markets will be computed at their average trading value in the fourth quarter of each year .

For these purposes, the list of securities traded in organized markets, with their average trading value corresponding to the fourth quarter of 2021, for the purposes of the Wealth Tax declaration for the year 2021 and the annual informative declaration about securities, insurance and income is included in Order HFP /115/2022, of February 23 ( BOE of 25 - correction of errors BOE March 24) .

Important: when it comes to subscription of new shares not yet admitted to listing official, issued by legal entities listed on organized markets, the value of these shares will be taken as the value of the last negotiation of the old securities within the subscription period.

In cases of capital increases pending disbursement, the valuation of the shares will be carried out in accordance with the previous rules, as if they were fully paid up, including the part pending disbursement as the debt of the taxpayer.

C. Shares and participations in the capital stock or in the equity fund of Collective Investment Institutions (Companies and Investment Funds), not traded on organized markets

The valuation of shares and participations in the capital stock or in the equity fund of Collective Investment Institutions not traded in organized markets will be carried out at their net asset value on the date of accrual of the tax , valuing the assets included in the balance sheet in accordance with the rules contained in its specific legislation and the obligations towards third parties being deductible.

D. Shares and participations in the capital stock or equity of any other legal entities not traded on organized markets, including participations in the capital stock of Cooperatives

Participations in the share capital of Cooperatives

The valuation of the shares of the members or associates in the social capital of the cooperatives will be determined based on the total amount of the social contributions disbursed , mandatory or voluntary, resulting from the last approved balance sheet, with deduction, if applicable, of unreimbursed social losses.
Participations in the share capital of other entities

The valuation of the aforementioned shares and participations will be carried out according to the theoretical value resulting from the last approved balance sheet , provided that this, either mandatory or voluntary, has been subject to review and verification and the audit report will be favorable .

In the event that the balance sheet has not been properly audited or the audit report is not favorable, the valuation will be carried out at the highest value of the following three:
1. Nominal value.
2. Theoretical value resulting from the last approved balance sheet.
  
  The Supreme Court's rulings of February 12 and February 14, 2013, in response to a criterion "favorable to the best approximation to the economic reality of the tax base of the tax" interpret that the balance approved within the of the legal period for the presentation of the self-assessment for the tax, so that "if on this date the year being settled is approved, even if this has occurred after the date of accrual, it must nevertheless be the one taken into account. account".
3. Value resulting from capitalizing at the rate of 20% the average of the entity's profits in the three fiscal years closed prior to the date of accrual of the Tax (December 31). The benefits will include dividends distributed and allocations to reserves, excluding those for regularization or updating of balance sheets.
  
  To calculate said capitalization, the following formula can be used:
  
  Value = [(B ₁+ B ₂+ B ₃) ÷ 3 ] x (100 ÷ twenty)
  
  Where: B ₁, B ₂and B ₃are the benefits of each of the three closed social exercises prior to the date of accrual of the Tax.

For the correct application of these valuation rules, entities are required to provide their partners, associates or participants with certificates containing the valuations of their respective shares and participations.