Accelerated amortization of new items of tangible fixed assets and real estate investments and intangible fixed assets
Regulations: Art. 103 LIS
Holders of economic activities, whose net income is determined by the direct estimation method, in any of its two modalities, in which each and every one of the requirements indicated below are met, may depreciate in an accelerated manner, for tax purposes, the new elements of tangible fixed assets and real estate investments and intangible fixed assets, in the terms indicated below.
Requirements
a) That the economic activity is considered a small business for tax purposes in the year in which the elements referred to in this tax benefit are made available.
b) That they are new elements of tangible fixed assets and real estate investments, as well as elements of intangible fixed assets, assigned to economic activities.
If the items are ordered under a contract for the execution of works signed during the tax period, they must be made available within 12 months of its conclusion.
The investment may also be made in tangible and intangible fixed assets and real estate investments, built or produced by the company itself, provided that the completion of the construction or production takes place in the tax period in which the economic activity is considered a small company for tax purposes or in the 12 months following the conclusion of the tax period.
Accelerated deductible amortization
New elements of tangible fixed assets and real estate investments, as well as elements of intangible fixed assets may apply the percentage resulting from multiplying by 2 the maximum linear coefficient provided for in the officially approved amortization tables.
Please note in this regard that the table of amortization coefficients applicable in the normal form of the direct estimation method is included in article 12.1.a) of the LIS . In the simplified version of the aforementioned method, the applicable amortization table is contained in the Order of March 27, 1998 (BOE of the 28th).
However, within intangible fixed assets, those whose useful life cannot be reliably estimated, as well as goodwill, may apply the percentage of 150% to the amount that is deductible from applying the provisions of article 12.2 of the LIS.
Article 12.2 of the LIS establishes that intangible assets whose useful life cannot be reliably estimated, as well as goodwill, will be deductible with the maximum annual limit of one twentieth of their amount (5 percent).
Without prejudice to the foregoing, for assets to which the transitional regime provided for in the thirteenth transitional provision of the LIS is applicable, that is, for those to which, in tax periods beginning before 1 January 2015, a depreciation coefficient other than that corresponding to the application of the depreciation table provided for in article 12.1 of the LIS was being applied, the new useful life of the asset must be determined based on the maximum linear coefficient provided for in the table established in the LIS, in order to, once determined, multiply by 2 the coefficient by which it must be depreciated during the tax periods remaining to complete its new useful life, on the net tax value existing at the beginning of the first tax period beginning on or after 1 January 2015.
Compatibility
This amortization regime will be compatible with any tax benefit that may arise due to the assets subject to it. Furthermore, this regime is subsidiary to the regime of free amortization with job creation, so it may be applied to the part of investment in new tangible fixed assets that exceeds the maximum limit set for the latter.
Example: Accelerated amortization of new items of tangible fixed assets and real estate investments and intangible fixed assets
Mr. AST is the owner of an economic activity dedicated to the manufacture of locksmith and artistic forging articles whose net income is determined by the direct estimation method, normal modality.
In 2020, the net turnover of the activity amounted to 2,800,000 euros.
In July 2021, the company acquired a new sheet metal and bar bending and curving machine for its business, the purchase price of which, including incidental costs, amounted to 36,000 euros.
The aforementioned machine was made available to Mr. AST in November 2021 and became operational on December 1, 2021.
Determine the deductible accelerated depreciation corresponding to said machine during fiscal year 2021.
Solution:
Since the economic activity in the year 2021 is considered a small company and this is the year in which the investment is deemed to have been made, when the aforementioned machine is made available to the owner, accelerated depreciation may be carried out in said year.
The calculation of said amortization is carried out as follows:
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Maximum linear amortization coefficient according to tables: 12 per 100
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Accelerated amortization coefficient: (12 x 2) = 24 per 100
- Accelerated depreciation amount: (24% s/36,000) x 1/12 = 720 euros