New features of regulations 2022

Main tax developments introduced by Law 28/2022, of 21 December, on the promotion of the ecosystem of emerging companies

PERSONAL INCOME TAX (IRPF)

Final Provision Three of Act 28/2022, of 21 December, introduces the following modifications with effect from 1 January 2023 in Act 35/2006, of 28 November, on Personal Income Tax

1. Earned incomes in kind

   Article 42,3 (f) of the Personal Income Tax Act is amended by section Two of Final Provision Three of Act 28/2022, so that,

   In the case of delivery of shares or shares to employees of emerging companies, the amount of the exemption is increased from 12,000 to 50,000 euros per year. The exemption will also apply when this delivery is the result of the exercise of purchase options previously granted to them.

2. Temporary attribution

   A letter m) is added to section 2 of article 14 of the Personal Income Tax Act under section One of the Final Provision Three of Act 28/2022, under which,

   A special rule of temporary imputation is established for earned income that is not exempt due to exceeding the amount set out in the previous point , which allows it to be deferred to the tax period in which certain circumstances occur, and in any case, within ten years from the delivery of the shares or holdings.

3. Valuation of income in kind

   A new point g) is added in section 1 of article 1 (43) in section Three of the Final Provision Three of Act 28/2022, whereby,

   A special rule for the assessment of earned income in kind is introduced to clarify the value of the shares or holdings granted to workers in emerging companies.

4. Deduction for investment in a new or recently created company

   Article 1 (68) of the Personal Income Tax Act is amended by section Four of the Final Provision Three of Act 28/2022, so that,

   The deduction is increased by increasing the rate from 30% to 50% and increasing the maximum base from 60,000 to 100,000 euros.

   In general terms, the term for subscribing shares or holdings is increased from three to five years, from the date of the institution's constitution, to seven for certain categories of emerging companies.

   In addition, for the founding partners of emerging companies, this deduction is allowed regardless of their percentage of participation in the company's share capital.

5. Special scheme applicable to employees posted to Spanish territory

   Article 93 of the Personal Income Tax Act is amended by section Five of the Third Final Provision of Act 28/2022, so that,

   Access to the scheme has been improved, decreasing from 10 to 5 the number of tax periods prior to the movement to Spanish territory during which the taxpayer cannot have been a tax resident in Spain.

   The scheme extends to workers who move to Spanish territory to work remotely, whether or not ordered by the employer , using only IT, telematic and telecommunication systems and administrators of emerging companies, regardless of their percentage of participation in the company's capital.

   In addition, the possibility of taking advantage of this special scheme is established, the taxpayer's spouse and the taxpayer's children under twenty-five years old (or whatever their age in the event of disability) or, in the event of a marriage bond, the parent of the children, provided that certain conditions are met.

6. Tax rating of the returns obtained by the management of funds linked to entrepreneurship, innovation and the development of economic activity

   A new additional provision of the is added by section Six of Final Provision Three of Act 28/2022, which,

   Direct or indirect derivatives of holdings, shares or other rights, including success fees, which grant special economic rights in certain entities, obtained by the administrative persons, managers or employees of these entities or their management entities or entities in their group.

   These returns will be included in the gross tax base at 50% of their amount, without any exemption or reduction being applied, when certain requirements are met.