Assets subject to reinvestment

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

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

2. Securities representing participation in the capital or equity of all types of entities that grant a stake no less than 5 percent the share capital of those entities. The calculation of the acquired participation will refer to the period established for making the reinvestment. These values may not generate any other tax incentive at the level of taxable base or total rate. For these purposes, value corrections and exemptions referred to in article 21 of RDLeg. will not be considered a tax incentive. 4/2004, nor deductions to avoid double taxation.

When the securities in which the reinvestment materializes correspond to entities that have assets not affected by economic activities , according to the balance sheet of the last closed fiscal year, in a percentage greater 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 those securities. This percentage will be calculated on the consolidated balance sheet if the securities acquired represent a stake in the capital of a parent entity of a group according to the criteria established in article 42 of the Commercial Code, regardless of the residence and the obligation to prepare consolidated annual accounts, which will include multi-group and associated entities in accordance with commercial legislation. However, the taxpayer may determine this percentage based on the market values of the items included in the balance sheet.

The following shall be considered as non-affected elements direct or indirect participations in the entities referred to in section 4 of article 42 of the Royal Decree-Law. 4/2004 and the assets that constitute their assets, if they form part of the group referred to in the previous paragraph. Those elements that meet the conditions established in numbers 1 and 2 of paragraph a) of article 4.Eight.Two of Law 19/1991, of June 6, on the Wealth Tax, will be counted as affected elements.

The values mentioned in letter b) above shall not be deemed to include those referred to in letters a), b), c) and d) of the previous section " Transferred assets that give the right to deduction ".

Reinvestment will not be deemed to have been made when the acquisition is carried out through operations between entities of the same group within the meaning of article 16 of the RDLeg. 4/2004, subject to the special regime established in Chapter VII of Title VII of the Royal Decree-Law. 4/2004. Nor will the reinvestment be deemed to have been made when the acquisition is made from another entity of the same group within the meaning of article 16 of the RDLeg. 4/2004, except in the case of new elements of tangible fixed assets or real estate investments