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Form 100. Personal Income Tax Declaration 2022

10.11.14. By investment in companies that develop agricultural activities

Amount

Taxpayers may deduct, with a joint limit of 20,000 euros, 20% of the amounts or, in the case of non-monetary contributions, of the value of the assets that they use in the year for the following investments:

  1. Acquisition of share capital as a result of agreements to establish companies or increase capital, as well as any contribution to reserves in:

    • Forest development companies regulated by Law 7/2012, of June 28, on the mountains of Galicia, and other types of joint management companies.

    • Agricultural entities, agricultural cooperatives or community exploitation of land whose exclusive purpose is agricultural activities.

    • Entities whose objective is the mobilization or recovery of agricultural land in Galicia under the protection of the instruments provided for in Law 11/2021, of May 14, on the recovery of agricultural land in Galicia.

  2. Loans made in favor of the same entities mentioned in point 1. above, as well as guarantees that the taxpayer constitutes personally in favor of these entities.

  3. Contributions that the capitalist partners make to joint accounts established for the development of agricultural activities and in which the managing participant is one of the entities mentioned in point 1. former.

Requirements

  • The operations must be formalized in a public deed, which must specify the identity of the taxpayers who intend to apply this deduction and the amount of the respective operation.

  • The investments made must be maintained in the taxpayer's assets for a minimum period of five years, computed from the day following the date on which the operation is formalized in a public deed.

    In the case of financing operations, the maturity period must be greater than or equal to five years, and an amount greater than 20% per year of the principal amount cannot be amortized. During that same period of five years, the guarantees established must be maintained.

  • The taxpayer may be part of the board of directors of the company in which the investment was made, but in no case may he carry out executive or management functions for a period of ten years, nor may he maintain an employment relationship with the entity that is the object of the investment. investment during that same period, except in the case of labor companies or cooperative societies.

Incompatibility

This deduction is incompatible, for the same investments, with the deductions "For investment in the acquisition of shares or social participations in new or recently created entities", "For investment in the acquisition of shares or social participations in new or recently created entities creation and its financing", and "By investment in shares of entities listed in the expanding companies segment of the alternative stock market."

Completion

You must enter the amount of the investment with the right to deduction and the NIF of the entity.