10.7.25. By investment in the acquisition of shares and social participations as a consequence of agreements to establish companies or increase capital in commercial companies

Amount

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

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

Requirements and conditions

• That, as a consequence of the participation acquired by the taxpayer, computed together with that held in the same entity by his spouse or persons linked to the taxpayer by reason of kinship, in a straight 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 is owned on any day of the calendar year.

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

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

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

  • That develops an economic activity. For these purposes, it will not be considered that it carries out an economic activity when its main activity is the management of movable or real estate 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 case in which 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 with two people with a part-time employment contract, provided that the total count 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 in the corresponding Social Security Regime and the conditions of the contract must be maintained for at least 24 months.

  • That, in the case in which the investment made corresponds to a capital increase of the entity, said entity would have been established within the three years prior to the capital increase and the average staff of the entity during the two fiscal years following the of the extension is increased with respect to the average workforce that 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 entity's total average workforce and its increase, the number of people employed will be computed, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.

• The operations that generate the right to 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 give rise to the integration of the deducted amounts into the full regional quota 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.