Venture capital companies, venture capital funds and regional industrial development companies

Article 50.1 of the LIS establishes for venture capital entities (companies and funds) , regulated by Law 22/2014, of November 12, which regulates venture capital entities, other closed-end collective investment entities and management companies of closed-end collective investment entities, and which modifies Law 35/2003, of November 4, on Collective Investment Institutions, the exemption of 99 percent of positive income obtained from the transfer of securities representing participation in the capital or equity of the venture capital entities referred to in article 3 of Law 22/2014, in relation to those income that do not meet the requirements established in article 21 of the LIS, provided that the transfer occurs from the beginning of the second year of ownership, computed from the moment of acquisition or exclusion from listing and up to the fifteenth year, inclusive. Exceptionally, an extension of this last period may be permitted up to the twentieth year, inclusive.

In the and fifth paragraphs of the aforementioned article 50.1 of the LIS, conditions are set out for the application of said exemption and in article 50.6 of the LIS, the cases in which the exemption is not applicable are set out if the requirements established in article 21 of the LIS are not met.

As regards the regional industrial development companies, article 51 of the LIS establishes that dividends or profit shares received from companies in which the regional industrial development companies regulated by Law 18/1982, of May 26, on the tax regime for groups and temporary unions of companies and regional industrial development companies, will enjoy the exemption provided for in article 21.1 of said regulation, regardless of the percentage of participation and the holding period of the shares or interests.

Filling in form 200

According to the above, venture capital companies and funds and regional industrial development companies must include in box [00378] "Venture capital companies and funds and regional industrial development companies (Chapter IV of Title VII LIS)" on page 13 of form 200, the amount of exempt income referred to in the previous paragraphs of this section.