# Regularisation procedure

The adjustment of deductions for capital goods is carried out as follows:

It is based on the deduction made in the year of purchase.

The amount that would correspond to the year of adjustment is subtracted by applying the definitive percentage of this year to the tax borne.

The positive or negative difference is divided by 5 (or 10 in the case of land or buildings) and the resulting quotient is the amount of additional income or deduction to be made, respectively.

**Supplementary income and deductions shall be made in the last self-assessment of the year.**

**Example:**

A company purchased a machine in year "n-1" for 20,000 euros plus 4,200 euros from VAT.The pro rata of "n-1" was 50%.

We are going to see the different possibilities that can occur depending on the operations carried out in "n".

If the pro rata of "n" is 67%.

It is necessary to regularise, because the deduction percentage applicable in the year of impact ("n-1") and that applicable in the year of regularisation differ by more than 10 percentage points = 50% - 67% = 17%.

You are entitled to a supplementary deduction of 142.8 euros, which will be shown in the "Regularisation of investment goods" box of the tax return form.

The pro rata share of "n" is 58%.

As the percentage of pro rata applicable in "n" (58%) differs by less than 10 points from that applicable in "n-1" (50%), no adjustment is due for the investments = 50% - 58% = 8%.

The deduction rate for "n" is 30%.

The deductions made should be regularised as there is a difference of more than 10 points in the percentages = 50% - 30% = 20%.

168 euros preceded by a minus sign, i.e. a smaller deduction that represents a supplementary income, shall be entered in the box "Regularisation of capital goods" of the tax return form.