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Practical Handbook for Companies 2021

Maintenance of investment.Formal requirements for the deduction

The asset items that are the object of the reinvestment must remain in operation in the taxpayer's assets, unless there is a justified loss, until the end of the period of five years, or three years in the case of movable assets, unless their useful life in accordance with the depreciation method of those permitted in article 11 of the RDLeg. 4/2004, as applicable, is lower.

The transfer of the reinvested assets before the end of the period mentioned in the previous paragraph will result in the loss of the deduction, unless the amount obtained or the net book value, if lower, is reinvested.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.

As a formal requirement, taxpayers must state the amount of income qualifying for the deduction provided for in this section and the date of reinvestment in the annual accounts.This mention must be done while is not met the maintenance period to which have been referred to above.