15. Long Term Savings Plans

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

Positive returns on capital assets from life insurance, deposits and financial contracts through which Long-Term Savings Plans are implemented, as referred to in the Twenty-Sixth Additional Provision of the Personal Income Tax Law , exempt, 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 aforementioned capital or failure to comply with any other requirement of those provided for in the twenty-sixth Additional Provision of the Personal Income Tax Law before the end of said period , will determine the obligation to integrate the income referred to in the previous paragraph generated during the validity of the Plan in the tax period in which such failure occurs.

The exemption only applies to positive returns on movable 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 such termination occurs and only in the portion of the total amount of such negative returns that exceeds the sum of the returns from the to which the exemption would have been applied.