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Practical Handbook for Companies 2021

Deduction base

The basis of the deduction is constituted by the amount of the income obtained in the transfer of the assets that has been included in the tax base with the limitations established in article 42.2 of the RDLeg. 4/2004.For the sole purpose of calculating this deduction base, the transfer value cannot exceed market value.

The amount of the impairment losses relating to the assets or securities will not form part of the income obtained in the transfer, insofar as the allocations to them have been tax deductible, nor the amounts applied to the freedom of amortisation, or to the recovery of the cost of the tax-deductible asset as provided for in article 115 of RDLeg.4/2004, which must be included in the tax base on the transfer of the assets and liabilities covered by these schemes.

The part of the income obtained in the transfer that has given rise to the right to double taxation relief will not be included in the basis for the deduction.

The inclusion in the basis of deduction of the amount of income obtained on the transfer of assets whose acquisition or subsequent use generates deductible expenses, irrespective of the year in which they accrue, shall be incompatible with the deduction of such expenses.The taxpayer may choose between the reinvestment deduction and the deduction of these expenses.In this case, the loss of the right to this deduction will be regularised in the method 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 basis for the deduction will be the part of the income that corresponds proportionally to the amount reinvested.