The 2026 Finance Law amends the “contribution-sale” mechanism, which allows taxpayers, under certain conditions, to defer capital gains tax on contributions of securities to a holding company they control.<\/p>\n
It strengthens the reinvestment and retention requirements for the acquired securities or assets while preserving the attractiveness of this tool for financing the economy.<\/p>\n
Thus, it increases from 60% to 70% the portion of proceeds from the sale of securities contributed to the holding company that must be reinvested to retain the benefit of the capital gains tax deferral, thereby ensuring that a more substantial share of these gains is reinvested in the economy.<\/p>\n
Similarly, it narrows the scope of eligible reinvestments by excluding certain banking, financial, and real estate activities.<\/p>\n
In return for these stricter reinvestment requirements, the law extends the reinvestment period from two to three years after the sale of contributed securities, allowing more time to select investment targets for reinvestment.<\/p>\n
Furthermore, it increases the holding period for assets or securities acquired through reinvestment in direct reinvestment from one to five years.<\/p>\n","protected":false},"excerpt":{"rendered":"
The 2026 Finance Law amends the “contribution-sale” mechanism, which allows taxpayers, under certain conditions, to defer capital gains tax on contributions of securities to a holding company they control. It strengthens the reinvestment and retention requirements for the acquired securities or assets while preserving the attractiveness of this tool for financing the economy. Thus, it […]<\/p>\n","protected":false},"author":10,"featured_media":32361,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[],"class_list":["post-37040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n