4.2.64 Codes 00377 and 00378 venture capital companies and funds and regional industrial development companies (Chapter IV, Title VII LIS)

For venture capital entities (companies and funds), regulated by Law 22/2014 regulating venture capital entities, other closed-end collective investment entities and management companies of closed-end collective investment entities, and which modifies Law 35/2003, of November 4, on Collective Investment Institutions, section 1 of article 50 of the LIS , establishes the exemption of 99 percent of the income obtained from the transfer of securities representing participation in the capital or funds of venture capital companies or entities referred to in article 3 of Law 22/2014, in relation to those incomes that do not meet the requirements established in article 21 of the LIS, provided that the transfer occurs from the beginning of the second year of holding computed from the moment of acquisition or delisting and until the fifteenth, inclusive. Exceptionally, an extension of this last period may be permitted up to the twentieth year, inclusive.

The fourth and fifth paragraphs of the aforementioned section 1 of article 50 of the LIS contain other conditions for the application of said exemption and section 6 of the same article contains the cases in which the exemption is not applicable if the requirements established in article 21 of the LIS are not met.

Dividends or profit shares received from companies in which regional industrial development companies regulated by Law 18/1982, of May 26, on the tax regime for groups and temporary unions of companies and regional industrial development companies, will enjoy the exemption provided for in article 21.1 of the LIS, regardless of the percentage of participation and the holding period of the shares or interests.

Venture capital companies and funds and regional industrial development companies must include in key [00378] (decreases), completing, where applicable, their corresponding breakdown boxes, the amount of exempt income referred to in the previous paragraphs of this section.