7.4.4.5. Amortisation and depreciation

Except for forestry activities, the amounts corresponding to the actual depreciation of the different elements due to operation, use, enjoyment or obsolescence will be deductible as depreciation of tangible or intangible fixed assets.

Depreciation shall be considered effective when the result of applying some of the following coefficients to the acquisition price or production cost of the asset element of the fixed assets:

1. The maximum linear depreciation coefficient.

2. The minimum linear depreciation coefficient derived from the maximum repayment period.

3. Any other linear depreciation coefficient between the two mentioned above.

However, new tangible fixed assets made available to the taxable person in the tax period, whose unit value does not exceed 601.01 euros, may be amortized freely, up to the limit of 3,005.06 euros referring to the tax period.

The Repayment Table is as follows:

The purchase price or production cost may be amortized, excluding residual value, if applicable.

In buildings, the part of the purchase price corresponding to the value of the land will not be amortized. when it is not known, the purchase price will be calculated on a pro rata basis between the land and construction property values in the year of acquisition.

The depreciation will be carried out by element, although in the case of equity elements included in the same Group of the Repayment Table the repayment may be made on all of them, provided that the part of the repayment corresponding to each equity element can be known at all times.

The tangible fixed assets will begin to be amortised from the moment they are in a position of operation and those of fixed assets that are in a position to produce income.

The useful life may not exceed the maximum repayment period established in the Repayment Table.

The depreciation of the capital assets of the tangible fixed assets acquired will be calculated on the acquisition price, up to the limit resulting from multiplying the amount resulting from applying the maximum linear depreciation coefficient by two.

In the event of transfer of use of goods with a purchase or renewal option, when there are no doubts about the economic conditions of the operation reasonable that one or more options will be exercised, it will be deductible for the transferee, as depreciation, an amount equivalent to the instalments depreciation corresponding to the aforementioned assets, applying the linear coefficient on the acquisition price or cost of production of the asset.

In any case, in order to reduce the repayment, it is essential to have documentary proof of the acquisition of the depreciable elements and that they are duly recorded in the investment goods logbook.

Attention: No depreciation or amortisation will be deducted to calculate the net yield of forestry activities

Acquisition OF ASSETS BETWEEN 1 JANUARY 2003 AND 31 DECEMBER 2004.

For acquisitions of new assets carried out between 1 January 2003 and 31 December 2004, the linear depreciation coefficients the maximum established in the official tables of depreciation coefficients will be understood as being replaced, in all the entries made, by the result of multiplying those by 1.1. The new coefficient will be applicable during the useful life of the new assets acquired in the aforementioned period.