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Form 200. Corporate Income Tax Declaration 2019

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:

  • These must be new elements of tangible assets or real estate investments, as well as elements of intangible assets, assigned to economic activities.

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

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

    • Commissioned under a work execution contract signed in the tax period provided that it is made available within the twelve months following its conclusion.

    • Built or produced by the company itself, in accordance with the temporal criteria established in the two previous letters.

  • 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.

  • In the case of elements of intangible 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 percent 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 Consolidated Text of the Corporate Tax approved by the RDLeg. 4/2004, of March 5, applicable to small companies with respect to elements of tangible assets and real estate investments assigned to 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 to apply the provisions of article 113 of the RDLeg. 4/2004, in periods beginning before January 1, 2015, continue its application with the same requirements and conditions provided for in said article:

  • Accelerated amortization is applied to elements of property, plant and equipment and real estate investments assigned to economic operations in which the reinvestment of the total amount obtained in the onerous transfer of elements of property, plant and equipment and investment properties also assigned to economic operations takes place. , carried out in the tax period in which the conditions of article 108 of RDLeg are met. 4/2004.

  • The amount of the 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.

  • The reinvestment must be carried out within the period between the year prior to the date of delivery or making available of the transferred asset element and the three years following. The reinvestment is understood to have been carried out on the date on which the assets in which the amount obtained in the transfer is materialized are made available.

  • When the amount invested is higher or lower 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 Consolidated Text of Corporate Tax approved by the RDLeg. 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 what is provided for in said articles with respect to the depreciation actually incurred, is not conditional on its accounting allocation to the profit and loss account. Therefore, companies benefiting from accelerated depreciation must include in the key [00314] (decreases), completing, where applicable, their corresponding breakdown boxes, the amount of the excess of the tax depreciation over the accounting depreciation of the asset element. in the tax period being declared. And in the tax periods subsequent to the one in which the asset element in question has been fully amortized for tax purposes, they must include in the key [00313] (increases), completing, where appropriate, their corresponding breakdown boxes, the amount of the corresponding accounting amortizations carried out therein. In the tax period in which the transfer of the asset element covered by accelerated amortization occurs, they must include in the key [00313] (increases) the amount of all the corresponding negative adjustments made and pending to be positively integrated into the tax base.