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Form 100. Personal Income Tax Declaration 2018

10.10.7. By investment in the acquisition of shares or social participations as a consequence of agreements to establish or increase capital in commercial companies

Taxpayers may deduct from the full regional quota 20 percent of the amounts invested during the year in the acquisition of shares or corporate participations as a result of agreements to establish companies or expand capital in commercial companies that take the form of a Public Limited Company, Limited Liability Company, Labor Limited Company, Labor Limited Liability Company or Cooperative Company, with a maximum limit of 4,000 euros .

The following requirements must be met:

  1. The participation acquired by the taxpayer, computed together with that held in the same entity by his spouse or persons linked by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to and including the third degree, cannot be higher than 40%. on any day of the calendar year, of the total share capital of the company that is the object of the investment or of its voting rights.

  2. The acquired shares must be maintained in the taxpayer's assets for a minimum period of three years following the constitution or expansion.

  3. The taxpayer must not exercise executive or management functions in the entity.

  4. The entity in which the entity must be materialized must meet the following requirements:

    1. It must have its registered office and tax address in Extremadura.

    2. That develops an economic activity. For these purposes, it will not be considered that it carries out an economic activity when its main activity is the management of movable and real estate assets.

    3. That, in the case in which the investment made corresponds to the constitution of the entity, from the first year it has at least one person with a full-time employment contract or with two people with a part-time employment contract, provided that the total count of hours in the case of a part-time employment contract is equal to or greater than that established for a person with a full-time employment contract. In any case, workers must be registered in the corresponding Social Security regime and the conditions of the contract must be maintained for at least 24 months.

    4. In the event that the investment was made through a capital increase, the commercial company must have been incorporated in the three years prior to the date of this increase, and in addition, the average workforce of the entity during the two subsequent fiscal years of the expansion is increased with respect to the average staff that it had in the previous twelve months by at least one person with the requirements of paragraph 3, and said increase is maintained for at least another 24 months.

      To calculate the entity's total average workforce and its increase, the number of people employed will be computed, taking into account the contracted day in relation to the full day.

  5. The operations in which the deduction is applicable must be formalized in a public deed, in which the identity of the investors and the amount of the respective investment must be specified.

Completion : You must directly indicate the amounts invested with the right to deduction.

If the investment is common to both spouses, if applicable, 50% must be entered in the declaration of each one.