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Form 200. Corporate Income Tax Declaration 2018

8.2.3 Transferred assets that give the right to deduction

The assets transferred, capable of generating income that constitute the basis of this deduction, are the following:

  • Those that have belonged to tangible assets, intangible assets or real estate investments affected by economic activities that had been in operation for at least one year within the three years prior to the transfer.

  • Securities representing participation in the capital or equity of all types of entities that grant a participation of no less than 5 percent of their capital and that have been owned at least one year prior to the date of transfer, provided that these are not dissolution or liquidation operations of those entities. The calculation of the transferred participation will refer to the tax period.

    For the purposes of calculating the time of possession, it will be understood that the values transmitted have been the oldest.

    When the transferred values correspond to entities that have assets not assigned to economic activities, according to the balance sheet of the last closed year, in a percentage greater than 15 percent of the assets, the deduction will not be applied on the part of income obtained in the transmission that corresponds in proportion to the percentage that has been obtained. This percentage will be calculated on the consolidated balance sheet if the securities transferred represent a participation in the capital of a dominant entity of a group according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare accounts. consolidated annual reports, which will include multi-group and associated entities under the terms of commercial legislation. However, the taxpayer may determine said percentage according to the market values of the elements that make up the balance sheet.

    Non-affected elements will be considered to be the participations, direct or indirect, in the entities referred to in section 4 of this article and the assets that constitute their assets, if they are part of the group referred to in the paragraph. former. The affected elements will be counted as those that meet the conditions established in numbers 1 and 2 of paragraph a) of article 4.Eight.Two of Law 19/1991, of June 6, on Wealth Tax.

    The following values will not be understood to be included among the values of this letter b):

    • a') That they do not grant a participation in the share capital or own funds.

    • b') Are representative of the participation in the share capital or equity of entities not resident in Spanish territory whose income cannot benefit from the exemption established in article 21 of RDLeg . 4/2004.

    • c') Are representative of collective investment institutions of a financial nature.

    • d') Are representative of entities whose main activity is the management of movable or real estate assets in the terms provided for in article 4.Eight.Two of Law 19/1991, of June 6, on Wealth Tax.

Assets subject to reinvestment

The assets in which the amount obtained in the transfer that generates the income subject to the deduction must be reinvested are the following:

  1. Those belonging to tangible and intangible assets or real estate investments affected by economic activities whose entry into operation is carried out within the reinvestment period.

  2. The values representing the participation in the capital or own funds of all types of entities that grant a participation of no less than 5 percent of their share capital. The calculation of the acquired participation will refer to the period established to carry out the reinvestment. These values may not generate another tax incentive at the level of tax base or full quota. For these purposes, value corrections and exemptions referred to in article 21 of the RDLeg will not be considered a tax incentive. 4/2004, nor deductions to avoid double taxation.

    When the values in which the reinvestment takes place correspond to entities that have assets not affected by economic activities, according to the balance sheet of the last closed year, in a percentage greater than 15 percent of the assets, the reinvestment will not be deemed to have been carried out in the amount that results from applying the percentage obtained to the acquisition price of those securities. This percentage will be calculated on the consolidated balance sheet if the acquired securities represent a participation in the capital of a dominant entity of a group according to the criteria established in article 42 of the Commercial Code, regardless of residence and the obligation to prepare accounts. consolidated annual reports, which will include multi-group and associated entities under the terms of commercial legislation. However, the taxpayer may determine said percentage according to the market values of the elements that make up the balance sheet.

    Non-affected elements will be considered to be participations, direct or indirect, in the entities referred to in section 4 of article 42 of the RDLeg. 4/2004 and the assets that constitute their assets, if they are part of the group referred to in the previous paragraph. The affected elements will be counted as those that meet the conditions established in numbers 1 and 2 of paragraph a) of article 4.Eight.Two of Law 19/1991, of June 6, on Wealth Tax.

    The values of this letter b) will not be understood to include those referred to in letters a'), b'), c') and d') above.

The reinvestment will not be deemed to have been carried out when the acquisition is carried out through operations carried out between entities of the same group in the sense of article 16 of the LIS under the special regime established in chapter VII of title VII of the RDLeg. 4/2004.

Nor will the reinvestment be deemed to have been carried out when the acquisition is made from another entity of the same group within the meaning of article 18 of the RDLeg. 4/2004, except in the case of new elements of tangible fixed assets or real estate investments.