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Form 200. Corporate Income Tax Declaration 2019

4.2.7 Codes 00303 and 00304 differences between accounting and tax amortization (Article 12.1 LIS).

When the accounting amortization carried out in the year by the taxpayer for any of the concepts referred to in article 12.1 of the LIS is greater than the fiscally admissible amortization according to the provisions of said sections, The amount of this excess difference must be entered in the increases key [00303] and, where applicable, in its corresponding breakdown boxes. Likewise, when the element in subsequent tax periods is amortized for accounting purposes, the amount of said difference must be entered in the decreases key [00304] and, where applicable, in its corresponding breakdown boxes, as a consequence of the reversal of the positive adjustment, based on tax amortization.

And in the event that the admissible tax amortization is greater than the accounting amortization carried out by the taxpayer for the aforementioned concepts (and it is not the case of an accounting error), the amount of the corresponding difference must be entered in the code [00304] of decreases. Likewise, when the element in subsequent tax periods is tax amortized, the amount of said difference must be entered in the increases key [00303], as a consequence of the reversal of the negative adjustment, based on the accounting amortization.

Article 12.1 of the LIS establishes that the amounts that, as amortization of tangible and intangible assets and real estate investments, correspond to the effective depreciation suffered by the different elements due to operation, use, enjoyment or obsolescence, are deductible.

And depreciation will be considered effective when:

  1. It is the result of applying the linear amortization coefficients established in the officially approved amortization tables.

  2. Be the result of applying a certain constant percentage on the value pending amortization. The constant percentage may not be less than 11 percent.

    Buildings, furniture and fixtures will not be eligible for constant percentage amortization.

  3. Be the result of applying the method of digit numbers. This method is not admissible for buildings, furniture and fixtures.

  4. It is calculated according to a scheme formulated by the taxpayer and accepted by the Tax Agency.

  5. The taxpayer can provide an acceptable justification for the amount.