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Form 100. 2019 Personal Income Tax return

10,8,10. Deduction for the promotion of entrepreneurship

Taxpayers may deduct 20% of the amounts invested during the financial year in the acquisition of shares or holdings as a result of agreements to set up companies.

The maximum deduction limit will be 10,000 euros both in individual and joint tax return.

Requirements

  1. Destination of the investment: Acquisition of shares or holdings as a result of agreements to establish companies or increase capital in the following companies:
    • Anonymous, limited or working when the company allocates the financing received to investment projects carried out in the territory of Castile and León.
    • Companies whose sole corporate purpose is the contribution of capital to public limited companies or companies whose registered office is in Castile and León, provided that the following conditions are met:
      • The company whose shares and holdings are acquired must use the financing received within six months to contribute capital to a limited or working company whose registered office and tax address is in Castile and León. For these purposes, the percentages of 1 per cent and 100 per cent of the company's capital required to apply the deduction will be calculated with respect to the capital contribution as a whole. 40 100
      • The limited or working company whose shares and holdings are acquired must meet the employment generation requirement set out below and not reduce its workforce in Castile and León

  2. Limited or limited companies must have their registered office and tax address in the Community of Castile and León

  3. Acquisitions of shares or holdings must represent a minimum amount of 0.5 per cent and a maximum of 100 per cent of the company's capital and must remain in the acquirer's assets for at least three years. 45 100
  4. Job creation: Companies with regard to which shares or holdings are acquired must increase in the year in which the investment is made or in the following year and with respect to the previous year:
    • Their global workforce of workers, in terms of people/year regulated by labour law, and keep this workforce for at least three years, and/or
    • The number of contracts signed with self-employed workers economically dependent on the company, and maintain these contracts at least three years, and/or
    • The number of persons who are included in the self-employed workers'regime who are the members of the holders of shares or holdings, and who are registered for at least three years.

  5. The maximum investment of the project that can be calculated for the application of the deduction will be that resulting from adding the following amounts:

    • 100,000 Euros for each person/year increase in the workforce.
    • 50,000 Euros for each contract with self-employed workers economically dependent on the company.
    • 50,000 Euros for each registration of self-employed workers who are members of family members.
  6. To practice this deduction, a certificate must be obtained from the entity whose shares or holdings have been acquired in which it is collected compliance, in the tax period during which the acquisition took place, with the requirements relating to the destination of the investment and, in its case, compliance with the specific conditions, location of the registered office and tax address, the percentage of capital acquired and finally the requirement for job creation.

Completion

The window will show the amounts invested with the right to deduction, once Annex B.7 has been completed, indicating the entity's NIF, the amount invested and the deductible amount.  The program will transfer the amounts from that annex.