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Form 100. Personal Income Tax Return 2022

10.11.8. For investment in the acquisition of shares or equity interests in new or recently created entities

Amount

Taxpayers may deduct from their total regional tax the 30% of the amounts invested during the year in the acquisition of shares or corporate interests as a result of agreements to form companies or increase capital in public limited companies, limited companies, cooperative companies, public limited labour companies or limited labour companies, with a maximum limit of 6,000 euros .

Requirements

  1. The taxpayer's participation, computed together with that of the spouse or persons related by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, may not be greater than 40% or less than 1% of the share capital of the company that is the object of the investment or its voting rights at any time and during the three years following the incorporation or expansion.

    The maximum limit on participation in the share capital shall not apply in the case of worker-owned companies or cooperatives composed of only two partners, as long as this circumstance is maintained.

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

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

    2. It must carry out an economic activity during the three years following its incorporation or expansion. For this purpose, its main activity must not be the management of movable or immovable assets.

    3. It must have, at least, one person employed with a full-time employment contract, registered with the General Social Security Regime, and with habitual residence in Galicia, for three years following its incorporation or expansion.

    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 start of the corporate tax period in which the increase was made, its average workforce with habitual residence in Galicia had increased by at least 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 number of people employed will be taken into account, in accordance with the terms established by labour legislation, taking into account the contracted working hours in relation to the full working day.

  3. Transactions to 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 shares acquired must remain in the taxpayer's assets for a minimum period of three years following the incorporation 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, labour companies and cooperatives that prove to be innovative small and medium-sized companies, in accordance with the provisions of Order ECC/1087/2015, of 5 June, which regulates the obtaining of the innovative small and medium-sized company seal and creates and regulates the operation of the Registry of Innovative Small and Medium-sized Companies.

  2. These are public limited companies, limited companies, labour companies and cooperatives that prove to be companies promoting a business project that has obtained qualification as a technology-based employment initiative, in accordance with the provisions of Decree 56/2007, of March 15, which establishes a support programme for technology-based employment initiatives (IEBT), by registering the initiative in the administrative Registry of Technology-Based Business Initiatives.

  3. These include public limited companies, limited companies, labour companies and cooperatives with the participation of universities or research organisations.

The maximum deduction limit in this case is 9,000 euros.

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 and their financing", "For investment in shares of entities listed in the segment of expanding companies in the alternative stock market" and "For investment in companies that carry out agricultural activities."

Completion

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

  • It will reflect the NIF of the entity in which the investment is made.

  • If the investment is made in small and medium-sized innovative companies or those with the participation of universities or research organisations or in a business project classified as a technology-based employment initiative, the box provided for this purpose must be checked.

The program will transfer the amount to Annex B.8.