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A company has enquired whether, after selling an asset acquired through the reinvestment of profits before the maintenance period has expired, it can carry out a new reinvestment to avoid losing the tax deduction. The Directorate General for Taxes (DGT) has ruled that a second reinvestment is possible, provided it complies with the terms and conditions set out in Article 42 of the Corporate Income Tax Law.
This ruling provides legal certainty for companies looking to maintain tax benefits through successive reinvestments of extraordinary profits, provided they adhere to statutory requirements.
The tax team reviews your specific situation.
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