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Form 100. Personal Income Tax Declaration 2019

10.8.10. Deduction for the promotion of entrepreneurship

Taxpayers may deduct 20 percent of the amounts invested during the year in the acquisition of shares or participations as a result of agreements to establish companies.

The maximum deduction limit will be 10,000 euros for both individual and joint returns.

Requirements

  1. Investment destination : acquisition of shares or participations as a result of agreements to establish companies or increase capital in the following companies:
    • Anonymous, limited or labor-related when the company allocates the financing received to investment projects carried out in the territory of Castilla y León.
    • Companies whose sole corporate purpose is the contribution of capital to public limited, limited or labor companies whose registered and tax domicile is in Castilla y León, provided that the following conditions are met:
      • That the company whose shares and participations are acquired use the financing received within a period of six months to contribute capital to a public limited, limited or labor company whose registered and tax domicile is in Castilla y León. For these purposes, the percentages of the minimum 1 percent and the maximum 40 percent of the company's capital required to apply the deduction will be computed with respect to the entire capital contribution.
      • That the public limited company or labor company whose shares and participations are acquired meets the employment generation requirement set forth below and does not reduce its workforce in Castilla y León.
  2. Public limited, limited or labor companies must have social and tax domicile in the Community of Castilla y León

  3. Acquisitions of shares or participations must involve a minimum amount of 0.5 percent and a maximum of 45 percent of the capital of the company and must remain in the assets of the acquirer for at least three years.
  4. Job creation : Companies in respect of which shares or participations 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 person-years regulated in labor regulations, and maintain this workforce for at least three years, and/or
    • The number of contracts signed with self-employed workers who are economically dependent on the company, and maintain these contracts for at least three years, and/or
    • The number of people who join the self-employed regime who have the status of collaborating family members of holders of shares or participations, and who maintain these registrations for at least three years.
  5. The maximum investment of the project that is eligible for the application of the deduction will be the result of adding the following amounts:

    • 100,000 euros for each increase of one person/year 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 collaborating family members.
  6. To make this deduction, it will be necessary to obtain a certification issued by the entity whose shares or participations have been acquired, which reflects compliance, in the tax period in which the acquisition occurred, with the requirements relating to the destination of the investment and, where applicable, compliance with the specific conditions, the location of the registered and tax domicile, the percentage of capital acquired and finally the job creation requirement.

Completion

The window will reflect the amounts invested with the right to deduction, once Annex B.7 has been completed, in which you must indicate the NIF of the entity, the amount invested and the deductible amount.  The program will transfer the amounts from that annex.