The so-called Law of Startups (emerging companies), through which the taxpayer is allowed to deduct half of what is invested in subscription of shares or participations in newly created companies, up to a maximum base of 100,000 euros per year, will come into force this Friday the 23rd.
Specifically, it is the Law for the Promotion of the Ecosystem of Emerging Companies, whose document is published this Thursday in the BOE, and which promotes a series of incentives for newly created companies, which do not have more than five years of existence. seniority, seven in the case of some strategic sectors, and that have their registered office in Spain.
The law establishes certain conditions for this deduction, such as that the shares or participations are well understood at the time of the incorporation of the company or that it has achieved a capital increase. In addition, they must remain in their assets for a period of more than three years and less than twelve years. To these requirements, among others, is added that the taxpayer must not have more than 40% of the capital of the company.
Until now, deductions are already being considered for this type of investment, which was set at 30% of capital up to a maximum of 60,000 euros on December 1, and a series of incentives and administrative simplifications are being contemplated for this type of company, such as the reduction of corporate tax up to 15% during the first four years, the elimination of the obligation to pay in installments or the possibility of deferring the tax debt.
It also establishes a tax exemption for share purchase options (‘stock options’) of up to 50,000 euros, among other measures. The law defines as newly created companies that have not invoiced more than 10 million euros and have developed an innovative entrepreneurship project that has a scalable business model.
The National Forum of Emerging Companies
By virtue of this law, before July, the Council of Ministers must approve a royal decree that regulates the operation of the National Forum of Emerging Companies, which will be an inter-ministerial consultative and collaborative body between public administrations, universities, public organizations and centers technology, and associations.
The objective will be to analyze, identify good and debate public policies to promote entrepreneurship in research and development practices and innovation. Among the functions of the forum is the issuance of a mandatory and non-binding report for the continuous evaluation of the application of this law.