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Form 100. 2020 Personal Income Tax Return Declaration

10.11.14. For investment in agricultural companies and cooperative societies

Taxpayers may deduct 20 percent of the amounts invested in the acquisition of share capital as a result of agreements to form companies or increase capital in agricultural companies and agricultural cooperative societies or in communal land exploitation.

Also with respect to the same entities, percent of the amounts lent or guaranteed personally by the taxpayer at the time of the incorporation of the company or the increase in its capital may be deducted.

The maximum joint limit of the deduction is 20,000 euros, regardless of the number of members of the family unit that pay the amounts that entitle them to it.

Requirements

  • The participation of the taxpayer, together with that of the spouse or of persons related by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, may not exceed 40 percent of the share capital of the entity or its voting rights at any time and during the three years following its incorporation or expansion. In the case of a loan or guarantee, the taxpayer's participation in the capital will not be necessary, but if it exists, it cannot exceed 40%, with the same previous limits. The maximum limit on participation in the share capital shall not apply in the case of worker-owned companies or cooperatives composed of only two partners, as long as this circumstance is maintained.
  • Entities subject to investment must have their registered office and tax domicile in Galicia for three years following their incorporation or expansion.
  • They must have agricultural activity as their exclusive corporate purpose.
  • The operations subject to deduction must be formalized in a public deed.
  • The shares must be held for a minimum period of three years in the taxpayer's assets following the incorporation or expansion.
  • In the case of loans, they must refer to financing operations with a term equal to or greater than 5 years.
  • In the case of guarantees, these must extend for the entire duration of the operation, and may not be less than five years.

Incompatibility

This deduction is incompatible, for the same investments, with the deductions "For investment in the acquisition of shares or social participations in new or recently created entities", "For investment in the acquisition of shares or social participations in new or recently created entities and their financing", and "For investment in shares of entities listed in the segment of expanding companies on the alternative stock market".

Completion

The program allows you to include up to two entities as the object of the investment. You must indicate, in a mandatory manner, the amounts invested in the entities, as well as their NIF.

 The program will transfer the data to Annex B7 of the declaration.