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V1809-17 10 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión

No general criteria for determining when a company possesses personal means for tax deductions

A query was made regarding when a company is considered to have personal means for its economic activity to apply the tax deduction for investment in start-ups. The Directorate General for Taxes (DGT) responded that this cannot be determined generally as it is a matter of fact.

The question raised

For the purposes of applying the deduction for investment in newly or recently created companies regulated in Article 68.1 of the Personal Income Tax Law, when is it considered that the company has personal resources for the exercise of its economic activity.

The DGT's ruling

The existence of personal and material resources for the development of the activity is a question of fact. Therefore, the DGT cannot determine when they are met, as they must be proven through evidence, and it is the competence of the management and inspection bodies to assess such evidence.

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