By investment in the acquisition of shares or social participations in new or recently created entities
Regulations: Art. 4.One.z), Sixth and Sixteenth Additional Provision Law 13/1997, of December 23, regulating the autonomous section of the Personal Income Tax and other transferred taxes, of the Valencian Community
A. In general
Amount and limit of the deduction
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30 percent of the amounts invested during the year in the subscription and payment of shares or corporate interests as a result of agreements to establish or increase the capital of public limited companies, limited liability companies and employee-owned companies or of voluntary or obligatory contributions made by partners to cooperative societies.
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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 fall on different investments .
Requirements and other conditions for the application of the deduction
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must not be shares or interests in an entity through which the same activity is carried out was previously carried out through another ownership.
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The entity in which the investment is to be made must meet the following requirements:
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It must have its registered office and tax domicile in the Valencian Community and maintain it for the three years following its incorporation or expansion .
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You must carry out an economic activity during the three years following the constitution or expansion .
For this purpose, the main activity must not be the management of movable or immovable assets, in accordance with the provisions of article 4.8.° Two.a) of Law 19/1991, of June 6, on the Wealth Tax.
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It must have, at least, one person employed with a full-time employment contract , registered in the general Social Security regime during the three years following the constitution or expansion.
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In the event that the investment had been made by means of 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 date of the start of the corporate tax period in which the investment had been made, its average workforce had increased by at least one person with respect to the average workforce existing in the previous twelve months and that this increase had been maintained for an additional period of twenty-four months.
To calculate the company's total average workforce and its increase, the number of people employed will be taken into account, in accordance with the terms established by labour legislation, taking into account the contracted working hours in relation to the full working day.
The requirements contained in numbers 3 and 4 will not be required for labor societies or for worker cooperative societies.
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The operations in which the deduction is applicable must formalized in a public deed, in which the identity of the investors and the amount of the respective investment must specified.
However, in the case of cooperative societies and except in the cases of incorporation, formalization in a public deed will not be necessary, and the subscription and disbursement of mandatory or voluntary contributions to the share capital made by the members must be justified by means of a certification signed by the person holding the position of secretary of the cooperative, with the approval of the president of the same and with the signatures notarized; When several subscriptions or disbursements have been made by the same member during the financial year, it will be sufficient to issue a single certificate, stating all the subscription and disbursement dates.
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The acquired shares must remain in the taxpayer's assets for minimum period of years following the incorporation or expansion.
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Furthermore, the application of the deduction is conditional on the delivery of the monetary amounts derived from the act or legal transaction that gives the right to its application being made by credit or debit card, bank transfer, personal check or deposit into accounts in credit institutions .
B. Additional increase in the deduction for certain circumstances
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The deduction may be increased by an additional 15% , when, in addition to meeting the above requirements, the entities receiving funds meet any of the following conditions:
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They must prove to be innovative small and medium-sized companies for the purposes of Royal Decree 475/2014, of June 13 , on bonuses in Social Security contributions for research staff, or be owned by universities or research organizations.
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Have your tax domicile in some municipality at risk of depopulation .
Municipalities at risk of depopulation
For a municipality to be considered at risk of depopulation must be a beneficiary of the Municipal Cooperation Fund for the fight against depopulation of municipalities of the Valencian Community in the fiscal year in which the tax accrual occurs, or in the previous year, by meeting the requirements established in Law 5/2023, of April 13, comprehensive measures against depopulation and for territorial equity in the Valencian Community.
Municipalities benefiting from the Municipal Cooperation Fund for the fight against depopulation in municipalities in the Valencian Community
The municipalities that benefit from the municipal cooperation fund are indicated in the annex to the resolutions that the Presidency of the Generalitat agrees annually by which the specific line of the Municipal Cooperation Fund for the Fight against Depopulation of the Municipalities of the Valencian Community is assigned.
For the campaign of the PIT corresponding to the 2024 financial year, the municipalities that appear, at least, in the annex of one of the following resolutions will have said status:
RESOLUTION of October 23, 2023 , of the Presidency of the Generalitat, on the allocation of the specific line of the Municipal Cooperation Fund for the Fight against Depopulation of the Municipalities of the Valencian Community to the respective beneficiary entities, for the budget year 2023.
RESOLUTION of November 11, 2024 , of the Presidency of the Generalitat, on the allocation of the specific line of the municipal cooperation fund for the fight against depopulation in the municipalities of the Valencian Community that corresponds to each beneficiary entity, in the 2024 budget year.
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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 for certain circumstances) are independent of each other when they apply to different investments.
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C. Amount of the deduction not applied in the year due to insufficient quota
In the event that the taxpayer does not have sufficient regional tax to apply all or part of this deduction in the period in which the right to its application is generated, the amount not deducted may be applied in the following three tax periods until its total amount is exhausted, if applicable.
It is up to the taxpayer to determine the order in which amounts pending deduction from previous years are to be applied.
In the event that there are amounts entitled to deduction that have been generated in the fiscal year and amounts pending deduction from previous fiscal years, the amounts from previous fiscal years will have priority in their application.
Incompatibility (not applicable to taxpayers who died between November 13 and December 23, 2024)
This deduction is incompatible with the application of the regional deduction "For contributions to the equity of entities that carry out economic activities" (intended for taxpayers affected by the floods caused by the DANA of October 2024) with respect to the same entity receiving the contributions.
Consequently, the taxpayer may not make contributions in the same tax period directed to the same entity entitle the taxpayer to apply both deductions , whether they correspond to the same amounts or to different ones. This does not prevent one of the deductions from being applied in the same period for contributions made during the fiscal year and the other deduction for contributions to the same entity made in previous periods.
Additionally, and given that the incompatibility is established with respect to the same taxpayer , in the case of joint taxation, each of the spouses may apply a different deduction for contributions to the same entity.
Note: Taxpayers entitled to the deduction must report the amount generated in 2024, the amount applied in the fiscal year, and the amount pending application that may be deducted in the following three tax periods. Once the information required to calculate the deduction generated in the fiscal year has been entered, it will be automatically transferred to the section "Additional information on the regional deduction for investment in the acquisition of shares and equity interests in new or recently created entities in Andalusia, Aragon, the Balearic Islands, Cantabria, Castile and León, Castile-La Mancha, Catalonia, Extremadura, Galicia, Madrid, Murcia and the Valencian Community" in Annex B.10 of the declaration.