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Practical Manual of Companies 2022.

Maintenance of investment. Formal deduction requirements

The assets object of the reinvestment must remain in operation in the taxpayer's assets, except for justified loss, until the term of five years has expired. , or three years if it is movable property, except if its useful life conforms to the amortization method admitted in article 11 of the RDLeg. 4/2004, which applies, is lower.

The transmission of the assets object of the reinvestment before the end of the term mentioned in the previous paragraph will determine the loss of the deduction, except if The amount obtained or the net book value, if lower, is subject to reinvestment. In such case, the loss of the right to this deduction will be regularized in the manner established in article 137.3 of the RDLeg. 4/2004.

As a formal requirement, taxpayers must record in the report of the annual accounts the amount of income eligible for the deduction provided for in this section and the date of the reinvestment. This mention must be made while the maintenance period referred to above is not met.