DEDUCTION FOR INVESTMENTS IN START UPS OR RECENTLY CREATED COMPANIES

The recent Law to support the entrepreneurs added a new tax credit for investments in start -ups and it is interesting to know in case you are considering about taking actions in this way.

This deduction is applicable only in the full state fee (cuota íntegra estatal) and corresponds to the 20% of the amounts paid for the acquisition of shares in start -ups or meeting the requirements.

 As for the maximum deduction basis , this will be €50,000 per year and corresponds to the acquisition cost of the shares subscribed . In the case of application of the exemption for reinvestment provided in Article 38, only the excess of the total amount obtained from the transfer of shares for which the exemption had been applied,  will be part of the basis of the deduction of new shares subscribed .

Another requirement of the application of the deduction ( Article 70.1) is that the amount of the taxpayer's wealth found at the end of the tax period exceeds the value checked at the beginning of it at least in the same amount of investments made .

Keep in mind that the tax payer must obtain a certificate issued by the entity whose shares have been acquired specifying the fulfillment of the requirements for the deduction . It provides for the regulation of the obligation to provide information for new entities or new creation whose partners or shareholders have requested the aforementioned certification (Article 105.2.e ).

·         Finally , we are going to consider the requirements for the shares to be acquired from an entity or company:

• It must take the form of a Shareholder company (S.A.) , Limited Liability Company (S.R.L or S.L), Labor Shareholder Company or Limited liability Labor Company .
  
  
• Running an economic activity having the human and material resources necessary for the development of the activity . So the simple management of a Wealth or an asset or  real state property is not included .
  
  
• The company capital stock may not exceed € 400,000 at the beginning of the tax period in which the taxpayer acquires the shares .

The deduction will be applicable only in respect of the shares subscribed from September 29, 2013 on.

For further details do not hesitate in contact VP Advisers.