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

Regulations: Art. 2.6 Text Revised Law on Fiscal Measures in the area of taxes transferred by the State, approved by Legislative Decree 62/2008, of June 19 , by the Autonomous Community of Cantabria.

Amount and maximum limit of the deduction

• 15 percent of the amounts invested during the year in the acquisition of shares or interests in companies as a result of agreements to establish companies or increase capital in the commercial companies detailed below.

• The maximum deduction limit will be 1,000 euros , both in individual and joint taxation.

Requirements and other conditions for the application of the deduction

To apply the deduction, the following requirements and conditions must be met:

1. That as a consequence of the participation obtained by the taxpayer, computed together with that held in the same entity by his/her spouse or persons related to the taxpayer by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, no more than 40% of the total share capital of the entity or its voting rights are held during any day of the calendar year .

2. The acquired shares must remain in the taxpayer's assets for a minimum period of three years.

3. The entity from which the shares or interests are acquired must meet the following requirements:

   1. It must be in the form of a Public Limited Company, Limited Company, Labor Public Limited Company or Labor Limited Company .

   2. It must be considered SMEs in accordance with their definition given by the Recommendation of the European Commission of May 6, 2003.

   3. Must have its registered office and tax domicile in the Autonomous Community of Cantabria .

   4. You must develop a economic activity .

      For this purpose, its main activity must not be the management of movable or immovable assets, in accordance with the provisions of Article 4. Eight. Two. a) of State Law 19/1991, of June 6, on Wealth Tax.

   5. In the event that the investment made corresponds to the constitution of the entity it must have, from the first fiscal year, at least, one person hired, full-time, registered with Social Security and resident in the Autonomous Community of Cantabria .

   6. In the event that the investment made corresponds to a capital increase :

      • The entity must have been established within the years prior to the capital increase and

      • The average workforce of the entity during the two fiscal years following the expansion must increase with respect to the average workforce it had in the previous twelve months by at least one hired person , full-time, registered with Social Security and resident in the Autonomous Community of Cantabria.

      • This increase must be maintained for at least another twenty-four months .

      To calculate the total average workforce of the entity and its increase, the persons employed in accordance with the terms established by labour legislation will be taken into account, taking into account the contracted working day in relation to the full working day.

4. The taxpayer or the taxpayer may be part of the board of directors of the company in which the investment has been made, but may not in any case carry out executive or management functions. You may also not maintain an employment relationship with the entity that is the object of the investment.

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

6. The requirements set forth in letters a and d in numbers 3, 4 and 5 of letter c above, must be met for a minimum period of three years from the effective date of the capital increase or incorporation agreement that gives rise to the right to the deduction.

Loss of the right to the deduction made

Failure to comply with the established requirements and conditions entails the loss of the tax benefit and the taxpayer must include in the tax return corresponding to the year in which the failure occurred the part of the tax that has not been paid as a result of the deduction made, together with the accrued late payment interest.

Important: Taxpayers entitled to the deduction must complete the section "Additional information on the regional deduction for investment in the acquisition of shares and equity interests in new or recently created entities" in Annex B.8 of the declaration in which, in addition to the amount of the investment entitled to deduction, the NIF of the newly or recently created entity must be stated and, if applicable, that of the second entity, indicating the total amount of the deduction for investments in newly or recently created companies.