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V3501-20 2 December 2020 · 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 the minimum holding period is not met

A taxpayer inquired whether they were required to repay a tax deduction for investing in a start-up following the company's dissolution before the mandatory three-year holding period had elapsed. The Directorate General of Taxes (DGT) ruled that, as the holding requirement was not satisfied, the taxpayer must regularise their position by repaying the deduction plus late-payment interest.

The question raised

Whether the deduction applied must be regularized due to failure to comply with the aforementioned period.

The DGT's ruling

The deduction for investment in newly or recently created companies requires that the holdings remain in the taxpayer's assets for a period exceeding three years. Upon the dissolution of the company before said period, the right to the deduction is lost. The taxpayer must add to the state net tax liability the total amount of the unduly applied deductions plus late payment interest.

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