4.2.70 Codes 00313 and 00314 small companies: accelerated amortization (Article 103 LIS)
Article 103 of the LIS establishes a case of accelerated amortization applicable to companies that meet the requirements contained in article 101 of the LIS, in accordance with the following conditions:
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These must be new elements of tangible fixed assets or real estate investments, as well as elements of intangible fixed assets, related to economic activities.
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These elements must be found in any of the following situations:
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Acquired from third parties and made available to the taxpayer in the tax period in which they meet the requirements established in article 101 of the LIS.
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Those appointed under a contract for the execution of works signed during the tax period, provided that they are made available within twelve months following the conclusion of the contract.
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Built or produced by the company itself, in accordance with the time criteria established in the two previous letters.
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As a general rule, the amount of tax-deductible amortization is the result of applying to the amortizable value a coefficient resulting from multiplying by 2 the maximum linear amortization coefficient provided for in the officially approved amortization tables.
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In the case of intangible fixed assets with an indefinite useful life referred to in section 3 of article 13 of the LIS, the amount of the tax deduction is equal to 150% of the amount resulting from applying said section.
The new regulation of the Corporate Tax has eliminated the assumption of accelerated amortization provided for in article 113 of the Revised Text of the Corporate Tax approved by the RDLeg. 4/2004, of March 5, applicable to small companies with respect to tangible fixed assets and real estate investments used for economic operations that are subject to reinvestment.
However, the twenty-eighth transitional provision of the LIS has established a transitional regime that allows small companies that were applying the provisions of article 113 of the RDLeg. 4/2004, in periods beginning before 1 January 2015, continue to apply with the same requirements and conditions provided for in said article:
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Accelerated depreciation applies to tangible fixed assets and real estate investments assigned to economic operations in which the reinvestment of the total amount obtained from the onerous transfer of tangible fixed assets and real estate investments also assigned to economic operations is materialized, carried out in the tax period in which the conditions of article 108 of RDLeg are met. 4/2004.
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The amount of tax-deductible amortization is the result of applying to the amortizable value a coefficient resulting from multiplying by 3 the maximum linear amortization coefficient provided for in the officially approved amortization tables.
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The reinvestment must be made within the period between one year prior to the date of delivery or availability of the transferred asset and three years thereafter. The reinvestment is deemed to have taken place on the date on which the assets in which the amount obtained from the transfer is realised are made available.
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When the amount invested is greater or less than that obtained in the transfer, accelerated amortization will be applied only to the amount of said transfer that is subject to reinvestment.
In any of the cases referred to in article 103 and the twenty-eighth transitional provision (in relation to article 113 of the Revised Text of the Corporate Tax approved by the Royal Decree-Law. 4/2004, of March 5), the first paragraph of section 3 of article 11 of the LIS establishes that the deduction of the excess of the amortizable amount resulting from the provisions of said articles with respect to the depreciation actually incurred, is not conditioned to its accounting imputation to the profit and loss account. Therefore, companies that are eligible for accelerated depreciation must include in key [00314] (decreases), completing, where applicable, the corresponding breakdown boxes, the amount of the excess of tax depreciation over the accounting depreciation of the asset in the tax period subject to declaration. And in the tax periods following the one in which the asset in question has been fully amortized for tax purposes, they must include in key [00313] (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 asset subject to accelerated depreciation takes place, the amount of all corresponding negative adjustments made and pending positive integration into the tax base must be included in key [00313] (increases).