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Practical Manual of Companies 2020.

Freedom to amortise investments in the electric, sustainable or connected mobility value chain

The sixteenth Additional Provision of the LIS , in its wording given by the eighth Final Provision of Royal Decree-Law 34/2020, of November 17, regulates a freedom of amortization for the investments made in the electric, sustainable or connected mobility value chain that may be carried out in the tax periods ending between April 2, 2020 and June 30, 2021.

Thus, investments in new elements of tangible fixed assets that involve sensorization and monitoring of the production chain, as well as , may be freely amortized implementation of manufacturing systems ##3##based on modular platforms or that reduce environmental impact, affecting the automotive industrial sector, made available to the taxpayer and that come into operation between April 2, 2020 and June 30, 2021, provided that, during the 24 months following the start date of the period tax period in which the acquired elements come into operation, the total average workforce of the entity is maintained compared to the average workforce of 2019.

The properties will not be able to benefit from the freedom of amortization regulated in this provision.

The maximum amount of the investment that may benefit from the freedom of amortization regime will be 500,000 euros.

Furthermore, for the application of this assumption of freedom of amortization, taxpayers must provide reasoned report issued by the Ministry of Industry, Commerce and Tourism to qualify the taxpayer's investment as suitable. Said report will be binding for the Tax Administration. This measure falls under the Temporary National Framework on aid measures to support the economy in the context of the current outbreak of COVID-19 , following European Commission Decisions SA56851(2020 /N), of April 2, 2020, SA.57019 (2020/N), of April 24, 2020, and SA.58778 (2020/N), of October 22, 2020.

You can consult the particularities of this assumption of freedom of amortization and how is declared in form 200, in Chapter 5 of this Practical Manual.