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Form 100. Personal Income Tax Return 2023

10.8.10. For the promotion of entrepreneurship

Amount

Taxpayers may deduct 20% of the amounts invested during the year in the acquisition of shares or interests as a result of agreements to form companies.

The maximum deduction limit will be 10,000 euros both in individual and joint declarations.

Requirements

  1. Destination of investment: Acquisition of shares or interests as a result of agreements to form companies or increase capital in the following companies:

    • Anonymous, limited or labour-based when the company allocates the financing received to investment projects carried out in the territory of Castilla y León.

    • Companies whose sole corporate purpose is the contribution of capital to public limited companies, limited companies or labour companies whose registered office and tax domicile are located in Castilla y León, provided that the following conditions are met:

      • That the company whose shares and interests are acquired uses the financing received within six months to provide capital to a public limited company, a limited company or a labour company whose registered office and tax domicile are located in Castilla y León.

        For these purposes, the percentages of the minimum 1% and the maximum 40% of the company's capital required to apply the deduction will be computed with respect to the total capital contribution.

      • That the public limited company, limited company or labour company whose shares and interests are acquired meets the requirement of job creation set out below and does not reduce its workforce in Castilla y León.

  2. Public limited companies, limited companies or labour companies must have their registered office and tax domicile in the Community of Castile and León.

  3. Acquisitions of shares or interests must represent a minimum amount of 0.5% and a maximum of 45% of the company's capital and must remain in the acquirer's assets for at least three years.

  4. Employment creation: Companies in which shares or interests are acquired must increase in the year in which the investment is made or in the following year and compared to the previous year:

    • Their overall workforce, in terms of people/year regulated by labor regulations, and maintain this workforce for at least three years, and/or;

    • the number of contracts signed with self-employed workers who are economically dependent on the company, and who maintain these contracts for at least three years, and/or;

    • the number of persons who join the self-employed workers' scheme who are collaborating family members of share or participation holders, and who remain registered for at least three years.

  5. The maximum project investment that is eligible for the application of the deduction will be the sum of the following amounts:

    • 100,000 euros for each increase of one person/year in the workforce.

    • 50,000 euros for each contract with self-employed workers who are economically dependent on the company.

    • 50,000 euros for each registration of self-employed workers who are collaborating family members.

  6. In order to apply this deduction, it will be necessary to obtain a certificate issued by the entity whose shares or interests were acquired, which states compliance, in the tax period in which the acquisition took place, with the requirements relating to the destination of the investment and, where applicable, compliance with the specific conditions, the location of the registered office and tax domicile, the percentage of capital acquired and finally the requirement for job creation.

Completion

The window will reflect the amounts invested with the right to the deduction and the NIF of the entity. The program will transfer the amounts to Annex B.8 of the declaration.