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Practical manual for Income Tax 2020.

By investment in shares of entities listed in the expanding companies segment of the alternative stock market

Regulations: Art. 5. Once Text Consolidated version of the legal provisions of the Autonomous Community of Galicia on taxes transferred by the State, approved by Legislative Decree 1/2011, of July 28.

Amount and maximum limit of the deduction

  • 15% of the amounts invested during the year in the acquisition of shares as a result of capital increase agreements signed through the expansion companies segment of the alternative stock market, approved by agreement of the Council of Ministers of December 30, 2005.

  • The maximum deduction limit is 4,000 euros.

The total deduction thus calculated will be prorated equally in the year in which the investment is made and in the three following years .

Requirements for applying the deduction

  1. The participation obtained by the taxpayer in the company that is the object of the investment cannot be greater than 10% of its share capital .
  2. The acquired shares must remain in the taxpayer's assets for period of least three years.

  3. The company that is the object of the investment must have its registered office and tax domicile in Galicia and its main activity must not be the management of movable or immovable assets, in accordance with the provisions of article 4.8. Two. a) of the State Law, 19/1991, of June 6, on the Wealth Tax.

    The requirements indicated in letters a and c above must be met throughout the maintenance period indicated in letter b, counted from the date of acquisition of the share.

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

Loss of the right to the deduction made

Failure to comply with the above requirements will result in the loss of the tax benefit.

Incompatibility

The deduction contained in this section will be incompatible, for the same investments , with the deductions for investment in the acquisition of shares or corporate interests in new or recently created entities of article 5. Nine of Legislative Decree 1/2011, for investment in the acquisition of shares or social interests in new or recently created entities and their financing of article 5.Ten of the aforementioned Legislative Decree, and for investment in agricultural companies and agricultural cooperative societies or for community exploitation of land of article 5.Fifteen of Legislative Decree 1/2011.

Note: Taxpayers entitled to the deduction must complete the section "Additional information on the regional deduction of Aragon, Galicia, Madrid or Murcia for investments in entities listed on the Alternative Stock Market" in Annex B.7) of the declaration in which, in addition to the amount of the investment entitled to deduction, the NIF of the newly or recently created entity must be stated and, if applicable, that of the second entity, indicating the total amount of the deduction for investments in entities listed on the Alternative Stock Market in the corresponding box.