8.2.6 Basis of deduction

The base of the deduction is constituted by the amount of income obtained in the transfer of the assets that has been integrated into the tax base with the limitations established in section 2 of article 42 of RDLeg . 4/2004. For the sole purposes of calculating this deduction base, the transfer value may not exceed the market value.

The amount of the provisions for impairment losses relating to the assets or securities will not be part of the income obtained in the transfer, insofar as the provisions for them would have been tax deductible, nor the amounts applied to the freedom of amortization, or to the recovery of the cost of the tax-deductible asset as provided for in article 106 of the LIS , which must be integrated into the tax base on the occasion of the transfer of the assets that were subject to said regimes .

The part of the income obtained in the transfer that has generated the right to practice the deduction for double taxation will not be included in the base of the deduction.

The inclusion in the deduction base of the amount of income obtained in the transfer of assets whose acquisition or subsequent use generates deductible expenses, regardless of the year in which they accrue, will be incompatible with the deduction of said expenses. The taxpayer may choose between taking advantage of the reinvestment deduction and the deduction of the aforementioned expenses. In such case, the loss of the right to this deduction will be regularized in the manner established in article 137.3 of the RDLeg. 4/2004.

If the reinvestment is made for an amount lower than the amount obtained in the transfer, the base of the deduction will be the part of the income that proportionally corresponds to the reinvested amount.