By investment in the acquisition of shares or stakes in new or recently created entities

Regulations: Article 5. Nine Text Recast of the legal provisions of the Autonomous Community of Galicia regarding taxes transferred by the State, approved by Legislative Decree 1/2011, of July 28

1. In general

Amount and maximum limit of the deduction

30 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 Public Limited Companies, Limited Companies, Labor Companies and Cooperatives.
The maximum limit of the deduction is 6,000 euros.

Requirements and other conditions for the application of the deduction

The participation of the taxpayer, computed together with those of the spouse or persons united by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, It cannot be more than 40% nor less than 1% of the share capital of the company that is the object of the investment or of its voting rights at any time and during the three years following the constitution or expansion.

The maximum limit of participation in the share capital will not apply in the case of labor companies or cooperatives composed of only two members, as long as this circumstance remains.
The entity in which the investment must be made must meet the following requirements:
1. It must have its registered and tax domicile in Galicia and maintain it for the three years following the constitution or expansion.
2. It must carry out an economic activity during the three years following the constitution or expansion. To this end, its main activity must not be the management of movable or real estate assets, in accordance with the provisions of article 4.8. Two. a) of Law 19/1991, of June 6, on Wealth Tax.
3. You must have, at least, an employed person with a full-time employment contract , registered in the general Social Security regime and with habitual residence in Galicia, during the three years following the constitution or expansion.
4. If the investment had been made through a capital increase, the commercial company must have been incorporated in the three years prior to the date of this increase, provided, in addition, during the twenty-four months following the start date of the corporate tax tax period in which the expansion of its average workforce with habitual residence was carried out in Galicia would have increased, at least by one person with respect to the average workforce with residence usual in Galicia in the previous twelve months , and that said increase be maintained for an additional period of another twenty-four months .
  
  To calculate the company's total average workforce and its increase, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.
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.
The shares acquired must be maintained in the taxpayer's assets for a minimum period of three years, following the constitution or expansion.

2. Additional increase in the deduction for certain circumstances

The deduction may be increased by an additional 15 percent when, in addition to meeting the requirements established for the deduction in general, one of the following circumstances occurs :
1. These are public limited companies, limited companies, labor companies and cooperatives that prove to be small and medium-sized innovative companies, in accordance with the provisions of Order ECC /1087/2015, of June 5, which regulates the obtaining of the small and medium-sized innovative company seal and creates and regulates the operation of the Registry of Small and Medium-sized Innovative Enterprises.
2. These are public limited companies, limited companies, labor companies and cooperatives that prove to be companies promoting a business project that has agreed to obtain qualification as a technology-based employment initiative , in accordance with the provisions of Decree 56/2007, of March 15, which establishes a support program for technology-based employment initiatives (IEBT), by registering the initiative in the Administrative Registry of Base Business Initiatives Technological.
3. These are public limited companies, limited companies, labor companies and cooperatives in which universities or research organizations participate.
The maximum limit of the deduction in these cases is 9,000 euros.

Attention: The percentage of deduction applicable for investments in which these circumstances occur will be 45 percent (30 percent + 15 percent) and the limit of 9,000 euros applicable for calculating the deduction, in these cases, is independent of the general limit of 6,000 euros.

Incompatibility

The deduction contained in this section will be incompatible, for the same investments, with the deductions "For investment in the acquisition of shares or social participations in new or recently created entities and their financing" provided for in article 5. Ten of Legislative Decree 1/2011, "For investment in shares of entities listed in the segment of expanding companies of the alternative stock market" provided for in article 5.Eleven of Legislative Decree 1 /2011 and "For investment in companies that develop agricultural activities" provided for in article 5.Fifteen of Legislative Decree 1/2011.

Note: 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 in the corresponding box.