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Practical Income Manual 2022.

For the promotion of entrepreneurship

Regulations: Art. 8 and 10 Consolidated text of the legal provisions of the Community of Castilla y León regarding its own taxes and taxes assigned by the State, approved by Legislative Decree 1/2013, of September 12

Amount and maximum limit of the deduction

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

  • The maximum deduction amount will be 10,000 euros, both in individual and joint taxation.

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 and, if it exists, that of the second entity must be stated, indicating the total amount of the deduction for investments in newly or recently created companies.

Requirements and other conditions for the application of the deduction

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

  • Investment destination: acquisition of shares or participations as a result of agreements to establish companies or increase capital in the following companies:

    - Public limited, limited or labor companies when the company allocates the financing received to investment projects carried out in the territory of Castilla y León.

    - Companies whose sole corporate purpose is the contribution of capital to public limited, limited or labor companies whose registered and tax domicile is in Castilla y León, provided that the following conditions are met :

    1. That the company whose shares and participations are acquired use the financing received within a period of six months to contribute capital to a public limited, limited or labor company whose registered and tax domicile is in Castilla y León.

      For these purposes, the percentages of the minimum 1 percent and the maximum 40 percent of the company's capital required to apply the deduction will be computed with respect to the entire capital contribution.

    2. That the public limited, limited or labor company whose shares and participations are acquired meets the employment generation requirement set forth below and does not reduce its workforce in Castilla y León.

  • Location of the registered and tax address : Public limited, limited or labor companies must have their registered office and tax address in the Community of Castilla y León .

  • Percentage of capital acquired: Only acquisitions of shares or participations for a minimum amount of 0.5 percent and a maximum of 45 percent of the capital of company , which are maintained in the assets, will only give the right to apply this deduction. of the acquirer for at least three years.

  • Employment creation: Companies in respect of which shares or participations are acquired must increase in the year in which the investment is made or in the following year and with respect to the previous year:

    • Its global workforce of workers, in terms of person-years regulated in labor regulations, and maintain this workforce for at least three years, and/or

    • The number of contracts signed with self-employed workers economically dependent on the company, and maintaining these contracts for at least three years, and/or

    • The number of people who join the self-employed worker regime who have the status of collaborating family members of holders of shares or participations, and maintain these registrations for at least three years.

  • Maximum investment: The maximum investment of the project that is eligible for the application of the deduction will be the result of adding the following amounts:

    • 100,000 euros for each increase of one person/year in the workforce.

    • 50,000 euros for each contract with self-employed workers economically dependent on the company.

    • 50,000 euros for each registration of self-employed workers who have the status of contributing family members.

      The concept of collaborating family member is that included in article 35 of Law 20/2007, of July 11, on the Statute of Self-Employment, or regulation that replaces it.

  • Formal requirements: To make this deduction, it will be necessary to obtain a certification issued by the entity whose shares or participations have been acquired, which reflects compliance, in the tax period in which the acquisition occurred, with the requirements related to the destination of the investment and, where applicable, compliance with the specific conditions, the location of the registered and tax domicile, the percentage of capital acquired and finally the job creation requirement.

Loss of the right to the deduction made

When in tax periods subsequent to their application the right is lost, in whole or in part, to the deductions made, the taxpayer will be obliged to add to the autonomous liquid quota accrued in the year in which the deduction requirements were not met. the amounts improperly deducted, plus the late payment interest referred to in article 26.6 of the LGT .

In relation to LGT see Law 58/2003, of December 17, General Tax.