15. Long Term Savings Plans

Regulations: Art. 7.ñ) and Additional Provision twenty-sixth Law PIT

The returns are exempt positives of the movable capital from life insurance, deposits and financial contracts through which the Long-Term Savings Plans are implemented, as referred to in the Twenty-sixth Additional Provision of the Law of PIT, provided that the taxpayer does not make any disposition of the capital resulting from the Plan before the end of the five-year period from its opening.

Long-Term Savings Plans are discussed in more detail in Chapter 5.

Any provision of the said capital or non-compliance of any other requirement provided for in the Twenty-sixth Additional Provision of the Law of PIT before the end of said period, will determine the obligation to integrate the returns referred to in the previous paragraph generated during the validity of the Plan in the tax period in which such non-compliance occurs.

The exemption only applies to positive returns on personal capital. negative returns that be obtained during the term of the Long-Term Savings Plan, including any that may be obtained upon termination of the Plan, will be imputed to the tax period in which said termination occurs and only in the part of the total amount of said negative returns that exceeds the sum of the returns from the same Plan to which the exemption would have been applied.