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Form 100. Personal Income Tax Declaration 2022

10.7.26. By investment in social economy entities

Amount

E l 20% of the amounts invested during the tax period in contributions made with the purpose of being a partner in entities that are part of the social economy referred to in the following section.

The maximum amount of this deduction is 4,000 euros per taxpayer.

Requirements and conditions

  1. The participation achieved by the taxpayer, computed together with those 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, may not exceed 40 percent of the capital of the entity. object of the investment or its voting rights.

  2. The entity in which the investment must materialize will have to meet the following requirements for a minimum period of five years counting from the contribution.

    • Be part of the social economy, in the terms provided in Law 5/2011, of March 29, on the Social Economy.

    • Have its registered office and tax address in Castilla-La Mancha.

    • Have, at a minimum, one employed person with a full-time employment contract, and registered in the general Social Security regime.

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

  4. The contributions must be maintained in the taxpayer's assets for a minimum period of five years.

  5. Failure to comply with the requirements and conditions established in the previous section, with the exception of point 3, will entail the loss of the tax benefit and, in such case, the taxpayer must include in the tax return corresponding to the year in which the non-compliance occurred. the part of the tax that had not been paid as a result of the deduction made, together with the accrued late payment interest.

Incompatibility

This deduction will be incompatible, for the same investments, with the deduction "For investment in the acquisition of shares and social participations as a consequence of agreements to establish companies or increase capital in commercial companies."

Completion

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