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

Regulations: Additional Provision fifty-third Law Personal Income Tax

• Since January 1, 2023, work income is classified as income obtained by the administrators, managers or employees of the entities indicated below or their managing entities or entities in their group, when derived directly or indirectly from participations, shares or other rights, including success commissions, that 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, which regulates venture capital entities, other closed-type collective investment entities and management companies of closed-type collective investment entities, and which modifies 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 organizations similar to the above .

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

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

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

     • its transmission mortis causa occurs

     • are settled early or

     • are left without effect

     • are lost totally or partially as a result of the change of managing entity ,

     In these cases, the shares, shares 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 the five years have elapsed there are partial payments that derive from these special economic rights (for example, from the success commission), the taxpayer may integrate these into the tax base in 50 percent of the amount as income from work. However, the shares, shares or other rights must subsequently be held for the time necessary to complete the minimum period of five years and meet the rest of the required requirements and conditions.

     In the event that the taxpayer receives one of these charges and it is included as income from work in his tax base in 50 percent of its amount, and subsequently the right to apply this tax regime occurs because the minimum period of five years of maintenance of the shares, shares or other rights has not been completed, without any of the circumstances that exempt compliance with the minimum period (so that their transmission mortis causa occurs, or that they are liquidated). in advance or become void or are lost totally or partially as a consequence 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 fee or amount derived from the exemption improperly applied in previous tax periods along with late payment interest.

     See this exemption in the section “" Work income derived directly or indirectly from participations, shares 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 under the terms provided for in LGT , which is applicable.