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V0072-21 22 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión

Tax deduction for investment in start-ups must be regularised if holding period is not met

A taxpayer inquired about how to regularise the tax deduction for investment in new or recently created companies after failing to meet the three-year minimum holding period. The Directorate General for Taxes (DGT) ruled that the previously claimed deduction, plus late payment interest, must be added to the state net tax liability.

The question raised

How should the deduction for investment in newly or recently created companies, provided for in Article 68.1 of the Personal Income Tax Law, be regularized when the three-year holding period for the interests in the taxpayer's assets has not been met.

The DGT's ruling

Failure to comply with the holding period for shares or interests (greater than three years and less than twelve) entails the loss of the right to the deduction. The taxpayer must regularize their situation by adding to the state net tax liability the total amount of the amounts unduly deducted, together with the corresponding late payment interest.

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