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Form 200. Corporate Income Tax Declaration 2018

8.4.3.5 2018: Deductions for job creation hiring under 30 (CEM-1)

Entities may apply the deductions established in article 37 of the LIS whenever they make contracts through the indefinite employment contract to support entrepreneurs defined in article 4 of Law 3 /2012, July 6, Urgent Measures for the Reform of the Labor Market.

The reporting entity must enter in key [00963] the amount that is attributable to it in the tax period being declared, in key [00964] the amount that, of said amount, applies in the tax period being declared, and in the key [00965] the part of that amount that, due to not having been included in the key [00964], remains pending for future periods.

Deduction amount

Entities may deduct 3,000 euros from the full amount of Corporate Tax for hiring the first worker through an indefinite-term contract to support entrepreneurs, who is under 30 years old.

This deduction will be applicable exclusively to those entities that lack hired personnel.

Application of the deduction

These deductions will be applied to the full amount of the tax period corresponding to the end of the one-year trial period required in the corresponding type of contract and will be conditional on maintaining this employment relationship for at least 3 years from the date of its start.

Failure to comply with any of the requirements indicated in this article will determine the loss of the deduction, which will be regularized in the manner established in article 125.3 of the LIS.

However, the obligation to maintain employment will not be deemed to have been breached when the employment contract is terminated, once the trial period has elapsed, for objective reasons or disciplinary dismissal when one or the other is declared or recognized as appropriate, resignation, death, retirement or permanent total, absolute disability or great disability of the worker.

The hired worker who gives the right to one of the aforementioned deductions will not be counted for the purposes of the increase in staff established in article 102 of the LIS.

Deadline to apply for the deduction

The amounts not deducted due to insufficient quota may be applied in the settlements of the tax periods that end in the immediate and subsequent 15 years.

Note:

With effect for tax periods beginning on or after November 7, 2018, Law 8/2018, of November 5, which modifies Law 19/1994, of July 6, adds article 94 bis in Law 20/1991, of June 7, modifying the fiscal aspects of the Economic Fiscal Regime of the Canary Islands, which includes in the Canary Islands the application of deductions for job creation of article 37 of the LIS.

According to the provisions of article 94 bis of Law 20/1991, entities that hire a worker to carry out their activity in the Canary Islands will have the right to apply the deductions for job creation of article 37 of the LIS, increased by 30 percent. :

  • Job creation by hiring people under 30 years of age: 3,900 euros for hiring the first worker through an indefinite-term contract to support entrepreneurs, who is under 30 years old.

  • Job creation by hiring unemployed people with unemployment benefits: 65 percent of the lesser of the amounts included in letters a) and b) of article 37.2 of the LIS.