New Benefits and Restrictions of the “apport-cession” Arrangement: The Holding Period for Reinvested Assets Reduced to 12 Months

The Amended Budget Act for 2016 (Article 33) also added to Article 150-0 B ter of the General Tax Code a minimum holding period of twelve months for the assets or securities involved in the reinvestment of 50 percent of the proceeds from their sale. This period is actually shorter than the one previously required by the tax authorities, which was a minimum of twenty-four months (BOI-RPPM-PVBMI-30-10-60-20160304, No. 295).

Although these legislative clarifications generally apply only to dispositions made on or after January 1, 2017, they may be invoked during a tax audit for transactions carried out prior to that date if the requirement to hold the replacement assets for twenty-four months could not be met.