Transitory rules: Amortization of assets subject to reinvestment by small companies
Regulations: Twenty-eighth transitional provision LIS
The owners of economic activities that determine the net return by the direct estimation method and were applying, prior to January 1, 2015, the amortization of assets subject to reinvestment that was regulated for small companies by article 113 of the consolidated text of The LIS , approved by Royal Legislative Decree 4/2004, of March 5, may continue its application, with the requirements and conditions established in that article.
For these purposes, the aforementioned article allowed the amortization of the elements of tangible fixed assets and real estate investments subject to economic exploitation in which the reinvestment of the total amount obtained in the onerous transfer of elements of tangible fixed assets had materialized. and the real estate investments also affected, depending on the coefficient resulting from multiplying by 3 the maximum linear amortization coefficient provided for in the officially approved amortization tables.
The requirements required in article 113 of the consolidated text of the LIS to apply this incentive were the following:
That in the year in which the element of tangible assets and real estate investments was transferred, the businessman or professional was the owner of a small company.
That the element transferred was for consideration, this benefit not being applicable to lucrative transfers.
That the investment was made within the period between the year prior to the date of delivery or making available the transmitted element and the three years following.
The reinvestment was understood to have been carried out on the date on which the assets in which the amount obtained in the transfer materialized were made available.
That the total amount obtained in the transmission be reinvested. When the amount invested was lower or higher than that obtained in the transfer, accelerated amortization was applied only to the amount of said transfer that was reinvested.
Note: Take into account the particularity that article 106 of the LIS establishes for small entities in financial leasing contracts, which is discussed in the section for leases and royalties within "Expenses tax deductible" of this Chapter.