10.5.27. By investment in the acquisition of shares and social participations of new or recently created entities

Amount

• He 20% of the amounts invested during the year in the acquisition of shares and equity interests as a result of company formation agreements or capital increases in commercial companies that take the form of a public limited company and a limited liability company with a limit of 4,000 euros per year provided that the requirements indicated in the following section are met.

• He 30% of the amounts invested in the acquisition of shares, stakes and social contributions as a result of incorporation agreements or capital increases of employee-owned public limited companies, employee-owned limited liability companies and cooperative societies with a limit of 6,000 euros.

• He 30% of the amounts invested, with a limit of 6,000 euros, in the case of companies created or owned by universities or research centers.

Requirements

1. That, as a consequence of the participation acquired by the taxpayer, counted together with that held by his spouse, de facto partner or persons united to the taxpayer by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree inclusive, he does not get to possess more than 40% of the total share capital of the entity or of his voting rights on any day of the calendar year.

2. That the taxpayer does not exercise executive or management functions in the investee entity.

3. That said participation is maintained for a minimum of three years.

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

   1. That it has its registered office and tax domicile in the Autonomous Community of the Canary Islands.

   2. 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 immovable property, in accordance with the provisions of article 4.eight.two.a) of Law 19/1991, of June 6, on Wealth Tax.

   3. That, in the event that the investment made corresponds to the establishment of the entity, from the first fiscal year it has at least one person hired with a full-time employment contract and registered with the General Social Security Regime. This requirement will not apply to worker-owned corporations, worker-owned limited liability companies and cooperative societies.

   4. 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 that 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 previous requirements, and said increase is maintained for at least another twenty-four months. For the calculation of the total average workforce of the entity and its increase, the people employed will be taken into account in the terms provided by labor legislation, taking into account the contracted working hours in relation to the full working hours.

Incompatibility

Amounts invested in the same share or stake in an entity may not entitle the holder to the simultaneous application of this deduction and point 6. of the deduction "For donations and contributions for cultural, sporting, research or teaching purposes" relating to capital contributions made to technology-based companies created or developed from patents or results generated by research projects carried out in Canary Islands universities.

Completion

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

• For each entity, it will record the amounts invested with the right to deduction.

The program will transfer the amount to Annex B.11.