Marcos Piñeiro Sanromán and María Fernández Pena of EY Abogados Galicia were the speakers at this conference.
The new laws introduce interesting modifications and tax incentives for the creation of and investment in startups.
The Law for the Promotion of the Start-up Ecosystem, better known as the “Start-up Law“, passed last December, and the Crea y Crece Law, passed last September, promote numerous tax innovations aimed at encouraging the creation of and investment in start-ups. In addition, they also include the implementation of electronic invoicing. Gradiant, in collaboration with the law firm Ernst & Young, has organized an informative session held this morning at the headquarters of the technology centre.
Almost fifty people have attended this day that has had as speakers Marcos Piñeiro Sanromán, partner of the tax area of EY Abogados Galicia and María Fernández Pena, Senior Manager of the Legal area of EY Abogados Galicia. During this presentation, they highlighted the main new features of both laws, the objectives and the possibilities offered by this new legislative framework.
Among the new features, one of the main ones is the adoption of electronic invoicing, introduced in the Crea y Crece law, which will be compulsory for companies and the self-employed within one year, provided that their annual turnover exceeds eight million euros. Companies and self-employed workers with a turnover of less than this amount will have up to two years to apply this law.
Regarding the Law for the Promotion of the Start-up Ecosystem, the Ernst & Young specialists highlighted the new tax framework and advantages it establishes for start-ups. Some of them are the reduction of the tax rate on corporate income tax and non-resident income tax: reduction of the general rate from 25% to 15% in the first four years after the taxable income starts to be positive; increase of the amount of the tax exemption for options up to 50,000 per year.
Increase in the maximum deduction base for investment in new or recently created companies: from 60,000 to 100,000 euros per year, as well as the deduction rate from 30% to 50%. The period considered as “recently created” for some companies has also been increased to seven years.
The experts from Ernst & Young Abogados Galicia informed an audience of around fifty people about all these new developments. After their intervention, they also answered some of the audience’s questions.