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Practical Handbook for Companies 2021

Tax system for certain leasing contracts

Article 106 of the LIS establishes a special tax regime for certain financial leasing contracts, in which, subject to the conditions and requirements set out therein, the transferee is allowed the accelerated tax depreciation of the assets covered by such contracts, without the need for their accounting imputation to the profit and loss account.

Filling in form 200

Taxpayers under this special regime should make the following adjustments in boxes [00317] and [00318] "Financial leasing:special regime (art. 106 LIS)" from page 13 of form 200:

  • The application of this special regime implies for the transferee who is covered by it a faster tax depreciation of the item and, therefore, a higher tax expense than for accounting purposes, the difference of which should be entered in the box [00318] of decreases, in the period covered by the tax return.

  • In subsequent tax periods, these amounts shall revert as a higher accounting expense than tax expense, to be entered in the box [00317] of increases, once the item is fully depreciated from a tax point of view, or as higher tax income in the event of disposal, deterioration, loss or definitive unusability of the item, unless in the latter case it is due to a cause not attributable to the taxpayer and duly justified.