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Practical manual for Income Tax 2024. Part 2. Autonomous community deductions

For contributions to the equity of entities that carry out economic activities

Important : This deduction is not applicable to investments made by deceased taxpayers prior to November 13, 2024.

Regulations: Art. 5 Decree Law 12/2024, of November 12, of the Consell, on fiscal support measures for people affected by the floods caused by DANA of October 2024

Amount and maximum limit of the deduction

  • 45% of the amounts invested in the subscription and disbursement of shares or equity interests as a result of agreements for the incorporation or capital increase of public limited companies, limited liability companies and worker-owned companies or voluntary or compulsory contributions made by partners to cooperative societies.

  • limit of euros per is established.

  • The deduction base may not exceed 30% of the taxpayer's taxable income.

    Important : This last limitation does not apply to investments made by deceased taxpayers between November 13 and December 23, 2024.

Requirements and other conditions for the application of the deduction

  • The entity in which the investment is to be made must meet the following requirements :

    1. You must have your registered office and tax domicile within the territorial scope of application of this deduction and maintain it for the three years following the incorporation or expansion .

      In the case of companies already existing as of November 12, 2024 , of the approval of Decree Law 12/2024, this circumstance should be met on October 29, 2024.

    2. In the event that it is an entity already existing as of November 13, 2024, of the entry into force of Decree Law 12/2024, it must have requested a ERTE for its workers as a result of the storm.

    3. In the case of a newly created entity , it must not be shares or participations in an entity through which the same activity is carried out as was previously carried out through another ownership.

    4. You must carry out an economic activity during the three years following the incorporation or expansion .

      For these purposes, entities whose main activity consists of the management of movable or immovable assets, in accordance with the provisions of article 4.8. Two.a) of Law 19/1991, of June 6, on Wealth Tax, will not be understood to be included in any of the entity's tax periods concluded prior to the transfer of the share.

    5. You must have at least one person employed with a full-time employment contract , or several people provided that the sum of their working days is at least equivalent to one full day, registered with the general Social Security system during the three years following the incorporation or expansion, except in the case of worker-owned companies or worker-owned cooperative companies.

Important : The limitations provided for in points 1 (second paragraph), 2 and 3 above do not apply to investments made by deceased taxpayers between 13 November and 23 December 2024 .

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

    However, in the case of cooperative societies and except in the cases of incorporation, formalization in a public deed will not be necessary, and the subscription and disbursement of mandatory or voluntary contributions to the share capital made by the members must be justified by means of a certification signed by the person holding the position of secretary of the cooperative, with the approval of the president of the same and with the signatures notarized; When several subscriptions or disbursements have been made by the same member during the time period of application of this deduction, it will be sufficient to issue a single certification, in which all the subscription and disbursement dates are stated.

  • The acquired shares must remain in the taxpayer's assets for minimum period of three years following the incorporation or .

Temporal scope of application of the deduction

The deduction applies to investments made between November 13, 2024, and December 31, 2025. 

Outstanding balances to be applied

The deduction must be made in the tax period in which the contribution is made.

In the event that the taxpayer does not have sufficient autonomous full quota to apply all or part of the deduction in the period in which said right is generated, the amount not deducted may be transferred to the three following tax periods, until the total amount is exhausted, if applicable.

Incompatibility (not applicable to taxpayers who died between November 13 and December 23, 2024)

This deduction is incompatible with the application of the regional deduction "For investment in the acquisition of shares or corporate interests in new or recently created entities" with respect to the same entity receiving the contributions.

- Consequently, the taxpayer may not make contributions in the same tax period directed to the same entity that entitle the taxpayer to apply both deductions ## , whether they correspond to the same amounts or to different ones. This does not prevent one of the deductions from being applied in the same period for contributions made during the fiscal year and the other deduction for contributions to the same entity made in previous periods.

- Additionally, and given that the incompatibility is established with respect to the same taxpayer , in the case of joint taxation, each of the spouses may apply a different deduction for contributions to the same entity.

Note: Once the information required for the calculation of the deduction has been entered by taxpayers entitled to apply it, it will be automatically transferred to the section "Additional information on the regional deduction of the Valencian Community for contributions to the equity of entities that carry out economic activities" in Annex B.12 of the declaration.