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Form 100. 2020 Personal Income Tax Return Declaration

10.11.8. By investment in the acquisition of shares or stakes in new or recently created entities

Taxpayers may deduct from the full regional quota 3 0 percent of the amounts invested during the year in the acquisition of shares or corporate participations as a result of company incorporation or expansion agreements. of capital in public limited companies, cooperatives, public limited companies or limited labor companies, with a maximum limit of 6,000 euros .

Requirements

  1. The taxpayer's participation, computed together with that of the spouse or persons linked by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, cannot be more than 40% nor less than 1% of the share capital. of the company object of the investment or its voting rights at any time and for three years following the constitution or expansion.

    The maximum limit of participation in the share capital will not apply in the case of labor companies or cooperatives composed of only two members, as long as this circumstance remains.

  2. The entity in which the investment must be made must meet the following requirements:

    1. It must have its registered office and tax address in Galicia and maintain it for the three years following the constitution or expansion.

    2. It must carry out an economic activity during the three years following the constitution or expansion. To this end, the main activity must not be the management of movable or real estate assets.

    3. It must have, at a minimum, one employed person with a full-time employment contract, registered in the General Social Security Regime, and with habitual residence in Galicia, during the three years following the constitution or extension.

    4. In the event that the investment was made through a capital increase, the commercial company must have been incorporated in the three years prior to the date of this increase, provided that in addition, during the 24 months following the date of the beginning of the tax period of the corporate tax in which the increase had been carried out, its average workforce with habitual residence in Galicia would have increased, at least by one person with respect to the average workforce with habitual residence in Galicia in the previous 12 months, and that said increase is maintained for an additional period of another 24 months.

      To calculate the company's total average workforce and its increase, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.

  3. The operations in which the deduction is applicable must be formalized in a public deed, in which the identity of the investors and the amount of the respective investment must be specified.

  4. The acquired shares must be maintained in the taxpayer's assets for a minimum period of three years following the constitution or expansion.

Increased deduction

The deduction may be increased by an additional 15% when, in addition to meeting the requirements established for the deduction in general, one of the following circumstances occurs:

  1. These are public limited companies, limited companies, labor companies and cooperatives that prove to be small and medium-sized innovative companies, in accordance with the provisions of Order ECC/1087/2015, of June 5, which regulates obtaining the seal of small and medium-sized innovative business and the operation of the Registry of Small and Medium-sized Innovative Business is created and regulated.
  2. These are corporations, limited companies, labor companies and cooperatives that certify that they are companies promoting a business project that has agreed to obtain qualification as a technology-based employment initiative, in accordance with the provisions of Decree 56/2007, of March 15, which establishes a support program for technology-based employment initiatives (IEBT), by registering the initiative in the Administrative Registry of Technology-Based Business Initiatives.
  3. These are public limited companies, limited companies, labor companies and cooperatives owned by universities or research organizations.

The maximum limit of the deduction in these cases is 9,000 euros.

Incompatibility

This deduction is incompatible, for the same investments, with deductions for investment in the acquisition of shares or stakes in new or recently created entities and their financing and for investment in shares of entities listed in the expanding companies segment of the alternative stock market and by investment in agricultural companies and agricultural cooperative societies or community exploitation of the land.

Completion

You must indicate the amounts invested with the right to deduction. In the case of marriage, and if the investment is common to both, 50% must be entered in the declaration of each spouse.

It will have to reflect the NIF of the entity in which you make the investment.

In the event that the investment is made in innovative small and medium-sized companies or those owned by universities or research organizations or in a business project classified as a technology-based employment initiative, the box marked for this purpose will be marked.

The program will transfer the amount to Annex B7