15. Long Term Savings Plans
Regulations: Art. 7.ñ) and Additional Provision twenty-sixth Law Personal Income Tax
Positive returns of movable capital from life insurance, deposits and financial contracts through which the Long-Term Savings Plans, referred to in the Provision, are implemented are exempt. Additional twenty-sixth of the Personal Income Tax Law , provided that the taxpayer does not make any disposition of the capital resulting from the Plan before the end of the five-year period since its opening .
Long-Term Savings Plans are discussed in more detail in Chapter 5.
Any disposition of the aforementioned capital or non-compliance with any other requirement set forth in the twenty-sixth Additional Provision of the Personal Income Tax Law before termination of said term , will determine the obligation to integrate the returns referred to in the previous paragraph generated during the term of the Plan in the tax period in which such non-compliance occurs .
The exemption only applies to positive returns on movable capital. Negative returns that, if applicable, are obtained during the term of the Long-Term Savings Plan, including those that could be obtained due to the termination of the Plan, will be attributed to the tax period in which said extinction occurs and only in the part of the total amount of said negative returns that exceeds the sum of the returns of the same Plan to which the exemption would have been applicable.