8.2.6 Basis of deduction

The basis for the deduction is constituted by the amount of income obtained from the transfer of assets that has been included in the tax base with the limitations established in section 2 of article 42 of RDLeg . 4/2004. For the sole purpose of calculating this deduction base, the transfer value may not exceed the market value.

The amount of the provisions for impairment losses relating to the assets or securities, insofar as the allocations to them would have been tax deductible, or the amounts applied to the freedom of amortization, or to the recovery of the cost of the tax deductible asset according to the provisions of article 106 of the LIS , which must be included in the tax base on the occasion of the transfer of the assets that were subject to said regimes, will not form part of the income obtained in the transfer.

The portion of the income obtained from the transfer that generated the right to apply the deduction for double taxation will not be included in the deduction base.

The inclusion in the deduction base of the amount of income obtained from the transfer of assets whose subsequent acquisition or use generates deductible expenses, regardless of the year in which they are accrued, will be incompatible with the deduction of said expenses. The taxpayer may choose between taking advantage of the reinvestment deduction and the deduction of the aforementioned expenses. 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.

If the reinvestment is made for an amount less than the amount obtained in the transfer, the basis for the deduction will be the part of the income that proportionally corresponds to the amount reinvested.