l) Returns obtained from the management of funds linked to entrepreneurship, innovation and the development of economic activity

Regulations: Additional Provision Fifty-Third Law IRPF

• From 1 January 2023, income from work is classified as income obtained by the directors, managers or employees of the entities listed below or their managing entities or entities in their group, when they derive directly or indirectly from participations, shares or other rights, including success commissions, which grant special economic rights in any of said entities.

• The entities referred to in the previous section are the following:

  1. Closed-ended Alternative Investment Funds defined in Directive 2011/61/ EU of the European Parliament and of the Council of June 8, 2011, relating to managers of alternative investment funds and amending Directives 2003/41/EC and 2009/65/EC and Regulations ( EC ) No. 1060/2009 and ( EU ) No. 1095/2010 included in one of the following categories:

     • Entities defined in article 3 of Law 22/2014, of November 12, regulating venture capital entities, other closed-end collective investment entities and management companies of closed-end collective investment entities, and amending Law 35/2003, of November 4, on Collective Investment Institutions.

     • European venture capital funds regulated by Regulation ( EU ) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European venture capital funds .

     • European social entrepreneurship funds regulated by Regulation ( EU ) No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European social entrepreneurship funds, and

     • European long-term investment funds regulated by Regulation ( EU ) 2015/760 of the European Parliament and of the Council of 29 April 2015 on European long-term investment funds .

  2. Other investment bodies similar to the above .

• The income from work will be integrated into the tax base at 50% of its amount , without any exemption or reduction being applicable, when the following requirements are met :

  1. The special economic rights of said shares, stocks or rights are conditional on that the remaining investors in the entity referred to in the previous section obtain a minimum profitability defined in the regulations or statutes of the same.

  2. The shares, stocks or rights are held for a minimum period of five years , unless:

     • its transmission occurs mortis causa

     • are settled early or

     • become ineffective

     • are lost in whole or in part as a result of the change of managing entity ,

     In these cases, the shares, stocks or rights must have been held uninterruptedly until such circumstances occur.

     Precision: Partial collections prior to the expiration of the five-year period

     If before years have elapsed partial collections are made that derive from these special economic rights (for example, from the success commission), the taxpayer may integrate these into the tax base to the extent of 50% of their amount as employment income. However, the shares, stocks or other rights must subsequently be held for the time necessary to complete the minimum period of five years and to meet the rest of the required requirements and conditions.

     If the taxpayer receives one of these payments and it is integrated as employment income in his tax base at 50% of its amount, and subsequently the right to apply this tax regime occurs due to not having completed the minimum period of five years of holding the shares, stock or other rights, without any of the circumstances that exempt compliance with the minimum period occurring (so that their transfer mortis causa occurs, or they are liquidated early or become void or are lost totally or partially as a result of the change of managing entity), the provisions of the second paragraph of article 122.2 of the LGT will apply, that is, the taxpayer must include in the self-assessment corresponding to the tax period in which the non-compliance occurred the quota or amount derived from the exemption applied improperly in the previous tax periods together with the late payment interest.

     See this exemption in the section “ Income from work derived directly or indirectly from shares, stocks or other rights, which grant special economic rights ” in Chapter 2.

     Exception: This tax treatment will not apply when the special economic rights come directly or indirectly from an entity resident in a country or territory classified as a non-cooperative jurisdiction or with which there are no regulations on mutual assistance in the exchange of tax information in the terms provided for in the LGT , which is applicable.