Deadline for reinvestment

1. The reinvestment must be carried out within the period between year prior to the date of making available of the transferred asset element and three years following , or, exceptionally, in accordance with a special reinvestment plan approved by the Tax Administration at the taxpayer's proposal. When two or more transfers have been made in the tax period of securities representing participation in the capital or equity of all types of entities, said period will be computed from the end of the tax period.

   The reinvestment will be understood to have been carried out on the date on which the assets in which it materializes are made available.

2. In the case of assets that are the subject of the financial leasing contracts referred to in section 1 of the seventh Additional Provision of Law 26/1988, of July 29, on discipline and intervention of the credit institutions, the reinvestment will be considered to have been carried out on the date on which the asset element object of the contract is made available, for an amount equal to its cash value. The effects of the reinvestment will be conditioned, on a resolutory basis, to the exercise of the purchase option.

3. The deduction will be made in the full amount corresponding to the tax period in which the reinvestment is made. When the reinvestment has been made before the transfer , the deduction will be made in the full amount corresponding to the tax period in which said transfer is made.