Valuation rules for shares and interests in the share capital or equity of any other legal entities not traded on organised markets, including interests in the share capital of Cooperatives
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Shares in the share capital of Cooperatives
The valuation of the shares of the partners or associates in the share capital of the cooperatives will be determined based on the total amount of the social contributions paid , mandatory or voluntary, resulting from the last approved balance sheet, with deduction, where appropriate, of the unreimbursed social losses.
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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 compulsorily or voluntarily, has been subject to review and verification and the audit report is favorable .
In the event that the balance sheet has not been duly audited or the audit report is not favorable, the valuation will be made at the highest of the following three values:
- Nominal value.
- Theoretical value resulting from the last approved balance sheet.(1)
- Value resulting from capitalizing at a rate of 20 percent 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 profits will include distributed dividends and allocations to reserves, excluding those for regularization or updating of balance sheets.
To calculate this capitalization, the following formula can be used:
Value = [(B 1 + B 2 ## + B 3 ) ÷ 3 ] x (100 ÷ twenty)
Where: B 1 , B 2 and B 3 are the profits from each of the three fiscal years closed prior to the tax accrual date.
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 interests.
(1) The Supreme Court rulings of 12 February and 14 February 2013, in accordance with a criterion "favorable to the best approach to the economic reality of the taxable base of the tax" interpret that the balance sheet approved within the legal period for the presentation of the self-assessment for the tax must be taken as a point of reference, so that "if the year being settled is approved on this date, even if this has occurred after the date of accrual, it must nevertheless be taken into account."(Back)