Exemption

Regulations: Art. 38. 2 and Additional Provision thirty-eighth of the Personal Income Tax Law; art. 41 Regulations.

Capital gains arising from the transfer of shares or interests for which the deduction for investment in newly created or recently created companies provided for in article 68.1 of the Personal Income Tax Law has been applied are declared exempt.

You will only be entitled to the exemption when the amount obtained from the aforementioned transfer is invested in the acquisition of shares or interests in another newly or recently created entity that meets the requirements and conditions set forth in sections 2, 3 and 5 of article of the Income Tax Law (requirements on the entity in which the investment is made, with respect to the shares and interests acquired and formal requirements), which are discussed in the section "Deduction for investment in newly or recently created companies" in Chapter 16, to which we refer.