Freedom to depreciate (boxes 00311 and 00312)
According to the first paragraph of Article 11.3 of the LIS, the deduction of the excess of tax depreciation by application of the freedom of depreciation over book depreciation is not conditional on its entry in the profit and loss account.
Therefore, small entities that apply this tax incentive under the terms of Article 102 of the LIS must make the following adjustments in boxes  and  "Small companies:freedom of depreciation (art. 102 LIS)" from page 13 of form 200:
In the box  of decreases, they shall include the amount of the excess of the tax depreciation over the accounting depreciation, of the corresponding item(s), even if this excess is not accounted for.In the subsequent tax periods to the one in which the item or items in question have been fully depreciated for tax purposes, the amount of the remaining accounting depreciation on these items should be included in the box  of increases.
In the tax period in which the transfer of the element or elements benefiting from the freedom of amortisation takes place, they must include in the box  of increases, the amount of the totality of the corresponding negative adjustments made and pending positive integration in the taxable base.
Below is an example of how small entities apply the freedom of depreciation, and how these calculations should be transferred to Form 200 (see also Example 2 in the section "Accelerated depreciation" on how these entities apply the freedom of depreciation and accelerated depreciation together).
Company "R", which in 2021 meets the requirements for the application of the tax incentives for small companies, has acquired new tangible fixed assets amounting to 200,000 euros.The acquisition takes place on 1 January 2021, the date on which these elements are placed at the disposal of Company "R" and become operational.The financial year of Company R coincides with the calendar year.The residual value of the items is estimated to be insignificant, so that the depreciable value coincides with the acquisition price.
The average total workforce of Company "R" in 2020 was 8.4 employees.Since it does not yet know the average number of employees for the twenty-four months following 1 January 2021 (years 2021 and 2022), Company "R" must consider whether it is appropriate to determine the amount on which it can apply the tax depreciation allowance, as the increase in the average number of employees applicable to the figure of 120,000 euros cannot be calculated.
Company "R" decides to freely amortise the full amount of 200,000 euros in 2021 under article 102 of the LIS, given that it considers that it will meet the requirements regarding the increase in the average number of employees and the maintenance thereof.Depreciation is calculated by applying a coefficient of 20 per cent, which is estimated by the company as the effective depreciation of these items.
Corrections that may be made by Company R to determine the tax base for corporation tax for 2021 (box ):
|Accounting depreciation||Tax depreciation||Decrease in the result |
of the profit and loss account
|200.000 x 20% = 40.000||200,000||160,000|
As of 31 December 2022, Company "R" already knows the average number of employees for the twenty-four months between 2021 and 2022, which is 10.6.Thus,
Pm(2021 - 2022) - Pm2020 = 10.6 - 8.4 = 2.2
The limit applicable to the free depreciation realised in 2021 is 2.2 x 120,000 = 264,000.Thus, Company "R", by freely amortising 200,000 euros in 2021, did not exceed the limit referred to above.
Furthermore, assuming that the average number of employees in the years 2023 and 2024 has been 10.8, the increase in the average number of employees in these years, compared to 2020, is 2.4 (10.8 - 8.4).Thus, Company "R" has maintained the increase of 2.2 employees for the years 2021-2022 compared to 2020.In short, Company "R" has fulfilled all the requirements for the depreciation of 200,000 euros to be tax deductible in 2021.
In this case, the corrections to be made in the financial year 2023 and subsequent financial years (boxes  and ) shall be:
|Financial year||Accounting depreciation||Tax depreciation||Correction||Form 200|
|2021||200.000 x 20% = 40.000||200,000||-160,000|||
|2022||200.000 x 20% = 40.000||---||+40,000|||
|2023||200.000 x 20% = 40.000||---||+40,000|||
|2024||200.000 x 20% = 40.000||---||+40,000|||
|2025||200.000 x 20% = 40.000||---||+40,000|||
Total book depreciation = 40.000 + 40.000 + 40.000 + 40.000 + 40.000 + 40.000 + 40.000 = 200.000
Total tax depreciation = 200,000