4.2.69 Codes 00311 and 00312 small companies: freedom of amortization (Article 102 LIS)

Article 102 of the LIS establishes a case of freedom of amortization applicable to small companies (those that meet the requirements contained in article 101 of the LIS itself), in accordance with the following conditions:

1. These must be new elements of tangible fixed assets or real estate investments related to economic activities. This regime will also apply to these items when they have been the subject of a financial leasing contract, provided that the purchase option is exercised.

2. These elements must be found in any of the following situations:

   1. Acquired from third parties and made available to the taxpayer in the tax period in which the conditions of article 101 of the LIS are met.

   2. Commissioned through a contract for the execution of works signed during the tax period and made available to the taxpayer within 12 months following its conclusion.

   3. Built by the company itself.

3. During the twenty-four months following the date of the beginning of the tax period in which the acquired assets are put into operation, the company's total average workforce must increase compared to the average workforce of the previous twelve months and this increase must be maintained for an additional period of another 24 months.

   The contracted worker who gives the right to one of the deductions provided for in article 37 of the LIS will not be counted for the purposes of the increase in staff established in this article 102 of the LIS.

   Report :

   To calculate the company's total average workforce and its increase, the number of people employed must be taken into account, in accordance with the terms established by labour legislation, taking into account the contracted working hours in relation to the full working day. Since there are no specific requirements regarding the type of employment contract, it will be irrelevant for the purposes of this calculation whether the contract is open-ended, temporary, training, etc.

4. The amount of the investment that can be subject to free amortization is the result of multiplying the amount of 120,000 euros by the increase set out in point 3 above, calculated with two decimal places (logically, said freely amortized amount cannot be greater than the acquisition value or production cost of the elements that are freely amortized).

5. The freedom of amortization will be applicable from the entry into operation of the elements that can benefit from it.

6. In the event of non-compliance with the obligation to increase or maintain the workforce, the full amount corresponding to the amount deducted in excess plus the corresponding interest for late payment must be paid.

   The payment of the full amount and late payment interest will be made jointly with the self-assessment corresponding to the tax period in which one or another obligation has been breached (on payment of amounts and late payment interest due to failure to meet the requirements to enjoy tax benefits, (see keys [00615] to [00618]).

In the case referred to in article 102 of the LIS, companies that benefit from freedom of amortization must include in key [00312] (decreases), completing, where appropriate, their corresponding breakdown boxes, the amount of the excess of tax amortization over accounting amortization, of the tax period subject to declaration, of the corresponding element or elements. And in the tax periods following the one in which the element or elements in question have been fully amortized for tax purposes, they must include in key [00311] (increases), completing, where appropriate, their corresponding breakdown boxes, the amount of the corresponding accounting amortizations that they carry out in them. In the tax period in which the transfer of the element or elements subject to free amortization takes place, the amount of all corresponding negative adjustments made and pending positive integration into the tax base must be included in key [00311] (increases).