10.7.25.For investment in the acquisition of shares and corporate interests as a result of agreements to establish companies or increase capital in commercial companies

Amount

20% of the amounts invested during the year for the acquisition of shares or corporate interests, as a result of agreements to establish companies or increase capital in commercial companies that take the form of a Public Limited Company, Limited Liability Company, Public Limited Labor Company, Limited Liability Labor Company or Cooperative Company.

The applicable deduction limit will be 4,000 euros annually per taxpayer.

Requirements and conditions

• That, as a consequence of the participation acquired by the taxpayer, computed together with the participation held in the same entity by his/her spouse or persons related to the taxpayer by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, no more than 40% of the total share capital of the entity or its voting rights are held on any given day of the calendar year.

• The shares acquired must remain in the taxpayer's assets for a minimum period of three years following the incorporation or expansion, and the taxpayer must not exercise executive or management functions in the entity.

• That the entity from which the shares or interests are acquired meets the following requirements:

  • That it has its registered office and tax domicile in the Autonomous Community of Castilla-La Mancha.

  • That develops an economic activity. For these purposes, it will not be considered that an economic activity is being carried out when its main activity is the management of movable or immovable assets, in accordance with the provisions of article 4. Eight two. a) of Law 19/1991, of June 6, on Wealth Tax.

  • That, in the event that the investment made corresponds to the constitution of the entity, from the first fiscal year it has at least one person with a full-time employment contract or two people with part-time employment contracts, provided that the total number of hours in the case of a part-time employment contract is equal to or greater than that established for a person with a full-time employment contract. In any case, workers must be registered with the corresponding Social Security System and the conditions of the contract must be maintained for at least 24 months.

  • That, in the event that the investment made corresponds to a capital increase of the entity, said entity had been established within the three years prior to the capital increase and the average workforce of the entity during the two fiscal years following the increase increases with respect to the average workforce it had in the previous twelve months by at least one person with the requirements of paragraph 3 above, and said increase is maintained for at least another twenty-four months.

    To calculate the total average workforce of the entity 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 day in relation to the full working day.

• Transactions that generate the right to the deduction must be formalized in a public deed, which must specify the identity of the investors and the amount of the respective investment.

• Failure to comply with the requirements set out in the previous section will result in the deducted amounts being included in the regional tax rate for the year in which the failure occurs, with the corresponding late payment interest.

Incompatibility

This deduction will be incompatible, for the same investments, with the deduction "For investment in social economy entities."

Completion

It will record the amount of the investment with the right to deduction and the NIF of the entity.