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

Regulations: Art. 4.Uno.z), Sixth and Sixteenth Additional Provision Law 13/1997, of December 23, which regulates the regional section of the Personal Income Tax Physical and remaining taxes transferred, from the Valencian Community

Note: For taxpayers who died before October 28, 2022 , take into account the limits contemplated for this deduction in the Practical Income Manual 2021.

A. In general

Amount and limit of the deduction

30 per 100 of the amounts invested during the year in the subscription and disbursement of shares or social participations as a result of agreements to establish or increase the capital of public limited companies, limited liability companies and labor societies or voluntary or mandatory contributions made by members to cooperative societies.
Limit . The amount of the deduction may not exceed 6,600 euros , both in individual taxation and in joint taxation.

Note: The limits of 6,600 euros (in general) and 9,900 euros (for the additional increase in the deduction for certain circumstances examined in section 2) are independent of each other when they apply to different investments.

Requirements and other conditions for the application of the deduction

They must not be shares or participations in an entity through which the same activity that was previously carried out through another ownership is carried out.
The entity in which the investment must be made must meet the following requirements:
1. It must have the registered and tax domicile in the Valencian Community and maintain it for the three years following the constitution or expansion .
2. You must exercise an economic activity during the three years following the constitution or expansion .
  
  To this end, the main activity does not have to 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 Tax on the Heritage.
3. It must have, at least, one person employed with a full-time employment contract , registered in the general Social Security regime during the following three years to the constitution or expansion.
4. In the event that the investment had been made through a capital increase or new contributions, the company must have been incorporated in the three years prior to the date of this increase , provided that, In addition, during the twenty-four months following the start date of the Corporate Tax tax period in which the investment was made, its average workforce increases, at least , in a person with respect to the average workforce existing in the previous twelve months and that this increase would 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 requirements contained in numbers 3 and 4 will not be required for labor societies or for associated labor cooperative societies.
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.
The acquired shares must be maintained in the taxpayer's assets for a minimum period of three years following the constitution or expansion .
Furthermore, the application of the deduction is conditional on the delivery of the monetary amounts derived from the legal act or business that gives the right to its application to be made by credit card or debit, bank transfer, nominative check or deposit into accounts at credit institutions .

B. Additional increase in the deduction for certain circumstances

The deduction may be increased by an additional 15 percent , when, in addition to meeting the previous requirements, the entities receiving funds meet any of the following conditions:
1. They prove to be small and medium-sized innovative companies for the purposes of Royal Decree 475/2014, of June 13 , on bonuses in Social Security contributions for research personnel, or are owned by universities or research organizations.
2. Have their tax domicile in some municipality at risk of depopulation .
  
  Municipalities at risk of depopulation
  1. To be considered a municipality as at risk of depopulation must be a beneficiary of the Municipal Cooperation Fund for the fight against depopulation of the municipalities of the Valencian Community in the budgetary year in which the depopulation occurs. accrual of the tax or in the previous one for meeting at least five of the following requirements:
    1. Population density. Number of inhabitants: less than or equal to twenty inhabitants per square kilometer.
    2. Population growth. Population growth rate in the period included in the last twenty years: less than or equal to zero percent.
    3. Vegetative growth rate . Percentage that represents the natural balance (difference between births and deaths) of the population in the period between the last twenty years: less than or equal to -10%.
    4. Aging index. Percentage represented by the population over 64 years of age over the population under 16 years of age: greater than or equal to two hundred fifty percent.
    5. Dependency index. Quotient between the sum of the population of those under 16 years of age and over 64 years of age and the population between 16 and 64 years of age, multiplied by 100: greater than or equal to sixty percent.
    6. Immigration rate. Percentage that represents the migratory balance in the period between the last ten years (difference between population entries and exits for migratory reasons) over the total population of the last year: less than or equal to zero.
    These data will be determined in accordance with the population figures approved by the Government that appear in the latest current municipal register, and official statistics published by the National Institute of Statistics, by the Valencian Institute of Statistics and official data from the Public Administrations.
  2. Municipalities that lose their status as beneficiaries of the fund due to meeting only four of the six required requirements will maintain this condition during the year in which said circumstance occurs.
  3. However, municipalities that, even without meeting the aforementioned requirements, belong to functional areas with a demographic density equal to or less than 12.5 inhabitants per square kilometer will also have this condition. The functional areas will be determined in accordance with the official data on territorial demarcations registered in the Registry of Local Entities of the Valencian Community, created by Decree 15/2011, of February 18, of the Consell.
  4. In any case, all municipalities with population less than 300 inhabitants will have this consideration s.
  Municipalities beneficiaries of the Municipal Cooperation Fund for the fight against depopulation of the municipalities of the Valencian Community
  
  The beneficiary municipalities of the municipal cooperation fund are indicated in the annex to the resolutions agreed annually by the Presidency of the Generalitat by which the specific line of the Municipal Cooperation Fund for the Fight against Depopulation of the Municipalities of the Generalitat is assigned. Valencian Community.
  
  For the Personal Income Tax campaign corresponding to the 2022 financial year, the beneficiary municipalities would be those included in the following resolutions:
  - Resolution of August 5 ( DOCV 09-August-2021), of the Generalitat, on the allocation of the specific line of the Municipal Cooperation Fund to combat the depopulation of the municipalities of the Valencian Community corresponding to each beneficiary entity, for the 2021 budget year.
  - Resolution of June 21, 2022 ( DOCV July 25, 2022), of the Presidency of the Generalitat, assigning the specific line of the Municipal Cooperation Fund for the Fight against Depopulation from the Municipalities of the Valencian Community to the respective beneficiary entities, for the 2022 budget year.
  Successive updates can be consulted at the following link: https://avant.gva.es/es/fons-cooperacio-despoblament
The maximum limit of the deduction in these cases is 9,900 euros , both in individual taxation and in joint taxation.

Note: The limits of 6,600 euros (in general) and 9,900 euros (for the additional increase in the deduction due to certain circumstances) are independent of each other when they apply to different investments.

C. Amount of the deduction not applied in the year due to insufficient quota

In the event that the taxpayer lacks sufficient full regional quota to apply all or part of this deduction in the period in which the right to apply it is generated, the amount not deducted may be applied in the three subsequent tax periods until the total amount is exhausted, if applicable.

It is up to the taxpayer to determine the order of application of the amounts pending deduction from previous years.

In the event that there are amounts with the right to deduct that have been generated in the year and amounts pending deduction from previous years, the amounts from previous years will have priority in their application.

Note: Taxpayers entitled to the deduction must enter the amount generated in 2022, the amount applied in the year and the amount pending application that may be deducted in the following three tax periods. To determine the total amount of the general deduction in 2022 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.