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Practical Handbook for Companies 2021

Assets subject to reinvestment

The assets in which must be reinvested the amount obtained in the transfer that generates the income subject to the deduction, are the following:

  1. Those belonging to tangible fixed assets, intangible assets or real estate investments assigned to economic activities whose entry into operation is carried out within the reinvestment period.

  2. Securities representing participation in the capital or equity of all kinds of entities that grant a participation of no less than 5 per cent of their share capital.The calculation of the acquired stake will relate to the period established for carrying out the reinvestment.These securities cannot generate any other tax incentive in terms of the gross tax base or charge.For these purposes, value adjustments, the exemptions referred to in Article 21 of RDLeg. 4/2004, nor deductions to avoid double taxation.

When the securities in which the reinvestment is made correspond to entities that have assets not assigned to economic activities, according to the balance sheet of the last financial year closed, in a percentage higher than 15 percent of the assets, the reinvestment will not be understood to have been made in the amount resulting from applying the percentage obtained to the acquisition price of these securities.This percentage will be calculated on the consolidated balance sheet if the securities acquired represent an interest in the capital of a parent entity of a group in accordance with the criteria established in Article 42 of the Commercial Code, irrespective of residence and the obligation to prepare consolidated annual accounts, which will include jointly controlled entities and associates under the terms of commercial legislation.However, the taxpayer may determine this percentage on the basis of the market values of the items making up the balance sheet.

The following shall be considered unaffected items: direct or indirect holdings in the entities referred to in section 4 of article 42 of RDLeg.4/2004 and the assets and liabilities that constitute their assets, if they form part of the group referred to in the preceding paragraph.Those elements that fulfil the conditions established in numbers 1 and 2 of paragraph a) of article 4.Eight.Two of Law 19/1991, of 6 June, on Wealth Tax, shall be considered as affected elements.

The values of this letter b) shall not include those referred to in letters a), b), c) and d) of the previous section ". Transferred assets giving entitlement to deduction".

Reinvestment shall not be deemed to have taken place when the acquisition is made through transactions between entities in the same group within the meaning of article 16 of RDLeg.4/2004 under the special regime established in Chapter VII of Title VII of RDLeg.4/2004.Nor will reinvestment be deemed to have taken place when the acquisition is made from another entity in the same group within the meaning of article 16 of RDLeg.4/2004, except in the case of new tangible fixed assets or investment property