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Practical manual for Income Tax 2021.

2. Other amortization systems

Other amortization systems are:

  • According to constant percentage

    Regulations: Art. 5 of the Regulation of IS

    Depreciation is understood to be effective when it is the result of applying a constant percentage on the value pending amortization. This constant percentage will be determined by weighting the linear amortization coefficient obtained from the amortization period according to officially approved amortization tables, by the following coefficients:

    • 1.5 , if the item has a depreciation period of less than 5 years. 

    • 2 , if the item has an amortization period equal to or greater than 5 years and less than 8 years.

    • 2.5 , if the item has an amortization period equal to or greater than 8 years.

    The constant percentage thus determined may not be less than 11%.

    The amount pending amortization in the tax period in which the useful life ends will be amortized in said tax period.

    Buildings, furniture and fixtures may not be depreciated using the constant percentage depreciation method.

    This amortization system is regulated in article 5 of the Corporate Tax Regulations, approved by Royal Decree 634/2015, of July 10.

  • According to digit numbers

    Regulations: Art. 6 of Regulation IS

    Depreciation is understood to be effective when it is the result of applying the single-digit method.

    The sum of the digits will be determined based on the amortization period, which may be any of those between the maximum period and the period deduced from the maximum linear amortization coefficient according to the officially approved amortization table.

    Buildings, furniture and fixtures cannot be subject to depreciation using digit numbers.

    This amortization system is regulated in article 6 of the Corporate Tax Regulations, approved by Royal Decree 634/2015, of July 10.

  • According to special plan

    Regulations: Art. 7 of Regulation IS

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

    The characteristics, conditions and requirements are established in article 7 of the Corporate Tax Regulations, approved by Royal Decree 634/2015, of July 10.

  • For justification of amortization

    Depreciation is deemed effective when the taxpayer justifies its amount.