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Practical Income Manual 2021.

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

Regulations: Art. 2.6 Text Recast of the Law on Fiscal Measures regarding 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 corporate participations as a result of agreements to establish companies or increase capital in commercial companies that will later be they detail.

  • 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 the participation of the same entity held by his or her spouse or persons linked to the taxpayer by reason of kinship, in a straight or collateral line, by consanguinity or affinity up to and including the third degree, no more than 40 percent of the total share capital of the entity or its voting rights is held on any day of the calendar year .

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

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

    1. It must take the form of a Public Limited Company, Limited Company, Labor 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. It must have its registered office and tax address in the Autonomous Community of Cantabria .

    4. You must develop an economic activity .

      To this end, its main activity should not be the management of movable or real estate 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 must have, from the first fiscal year, at least, a 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 incorporated within three years prior to the capital increase and

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

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

      To calculate the entity's total average workforce and its increase, the people employed in the terms provided by labor legislation will be taken, taking into account the contracted day in relation to the full 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 in no case may he or she carry out executive or supervisory functions. address. Nor can you 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 , which must specify the identity of the investors and the amount of the respective investment.

  6. The requirements established in letters a and d and in numbers 3, 4 and 5 of letter c above, must be met for a minimum period of three years from the date of effectiveness of the capital increase agreement or constitution that gives rise to the right to 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 consequence of the deduction made, together with the late payment interest accrued.

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