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V2281-20 6 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión

Tax deduction for investment in startups via cash contributions or debt offsetting

A query was raised regarding whether both shareholders making cash contributions and those offsetting credits held against the company can claim the tax deduction for investment in new or recently created companies. The Directorate General of Taxes (DGT) ruled that both methods are valid, provided all legal requirements are met.

The question raised

Whether both the partners making cash contributions and the partners receiving shares in exchange for offsetting credits held against the company may apply the deduction for investment in newly or recently created companies established in Article 68.1 of the Personal Income Tax Law.

The DGT's ruling

Both partners making cash contributions and those receiving shares in exchange for offsetting credits held against the company may apply the deduction provided in Article 68.1 of the Personal Income Tax Law. To do so, all requirements established in said article and in the resolution of the Central Economic and Administrative Tribunal that unifies this criterion must be met.

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