10.8.9. Deduction for the promotion of entrepreneurship

Taxpayers may deduct 20 percent of the amounts invested during the year in the acquisition of shares or interests as a result of agreements to establish public limited companies, limited companies or employee companies when the company allocates the financing received to investment projects carried out in the territory of Castile and León. (Section 1). The maximum deduction limit will be 10,000 euros for both individual and joint tax returns .

This deduction will be eligible for acquisitions of shares or interests for a minimum amount of 0.5% and a maximum of 45% of the company's capital, which are kept in the acquirer's assets for at least three years. (Section 2)

The application of this deduction will require that the companies in which shares or interests are acquired increase in the year in which the investment is made or in the following year and compared to the previous year in one or more of the following situations:

- Its overall workforce, in terms of people/year regulated by labor regulations, in the proportion of one person/year and maintain this workforce for at least three years.

- The number of contracts signed with self-employed workers who are economically dependent on the company, and who maintain these contracts for at least three years.

- The number of people who join the self-employed workers regime who are considered family members and collaborators.

The deduction provided for in section 1 above will also apply to the acquisition of shares or interests in companies whose sole corporate purpose is the contribution of capital to public limited companies, limited companies or labour companies whose registered office and tax domicile are located in Castile and León, provided that the following conditions are met:

1. That the company whose shares and interests are acquired uses the financing received within six months to provide capital to a public limited company, a limited company or a labour company whose registered office and tax domicile are located in Castilla y León. For these purposes, the percentages established in section 2 above will be computed with respect to the total capital contribution.

2. That the public limited company, limited liability company or labour company mentioned in the previous section meets the requirement of job creation included in section 3 above and does not reduce its workforce in Castilla y León.

(Section 4)

In order to apply the deduction regulated in this article, it will be necessary to obtain a certificate issued by the entity whose shares or interests have been acquired, which records compliance, in the tax period in which the acquisition took place, with the requirements relating to:

• The destination of the investment and, where applicable, the location of the registered office and tax domicile, as set out in sections 1 and 4,

• The percentage of capital acquired and job creation, included in sections 2 and 3 and, where applicable,

• The destination of the investment and the fulfillment of specific investments, included in section 4.

Completion

The amounts invested with the right to the deduction will be reflected in the window.