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V0179-14 27 January 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión

Tax deduction for investment in new or recently established companies may apply if requirements under Art. 68.1 IRPF are met

A query was raised regarding the definition of a new or recently established company for the purpose of the deduction under Article 68.1 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) clarifies that this concept is defined by compliance with the requirements and conditions set out in paragraphs 2 and 3 of the aforementioned regulation.

The question raised

To determine the concept of a new or recently created company in relation to the application of the deduction regulated in Article 68.1 of the Personal Income Tax Law.

The DGT's ruling

The concept of a new or recently created company for the deduction under Article 68.1 of the Personal Income Tax Law derives from compliance with the requirements and conditions regulated in paragraphs 2 and 3 of said article. These include the legal form, the exercise of an economic activity with own means, limits on equity, and conditions regarding the acquisition and holding of shares.

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