Differences between accounting and tax depreciation

article 12.1 of the LIS establishes that the amounts corresponding to the amortization of tangible and intangible assets and real estate investments are deductible. to the effective depreciation suffered by the different elements due to operation, use, enjoyment or obsolescence. And depreciation will be considered effective when:

1. Be the result of applying the linear amortization coefficients established in the following table:

   Element type		Linear coefficient maximum	Period of years maximum
   Civil engineering work	General civil engineering work	2 per 100	100
   	Pavements	6 per 100	34
   	Infrastructure and mining works	7 per 100	30
   Power plants	Hydraulic power plants	2 per 100	100
   	Nuclear power plants	3 per 100	60
   	Coal plants	4 per 100	50
   	Renewable plants	7 per 100	30
   	Other power plants	5 per 100	40
   Buildings	Industrial buildings	3 per 100	68
   	Land dedicated exclusively to waste dumps	4 per 100	50
   	Stores and deposits (gases, liquids and solids)	7 per 100	30
   	Commercial, administrative and services buildings and dwellings	2 per 100	100
   Facilities	Substations. Transport and power distribution networks	5 per 100	40
   	Cables	7 per 100	30
   	Other facilities	10 per 100	20
   	Machinery	12 per 100	18
   	Medical and similar equipment	15 percent	14
   Transport features	Trains, carriages and traction equipment	8 per 100	25
   	Ships, aircrafts	10 per 100	20
   	Internal transport elements	10 per 100	20
   	External transport elements	16 per 100	14
   	Dumper trucks	20 percent	10
   Furniture and fittings	Furniture	10 per 100	20
   	Lingerie	25 percent	8
   	Glassware	50 per 100	4
   	Chattels and tools	25 percent	8
   	Moulds, patterns and models	33 per 100	6
   	Other household goods	15 percent	14
   Electronic and computer equipment. Systems and programs	Electronic equipment	20 percent	10
   	Computer equipment	25 percent	8
   	Systems and computer programs	33 per 100	6
   Cinematographic, phonographic productions, videos and audiovisual series		33 per 100	6

   Regulations may modify the coefficients and periods provided for in this letter or establish additional coefficients and periods.

2. Be the result of applying a certain constant percentage on the value pending amortization.

   The constant percentage will be determined by weighting the linear amortization coefficient obtained from the amortization period according to officially approved amortization tables, by the following coefficients:

   • 1.5, if the item has a payback period of less than 5 years.
   • 2, if the element has a amortization period equal to or greater than 5 years and less than 8 years.
   • 2.5, if the item has a amortization period equal to or greater than 8 years.

   The constant percentage may not be less than 11 percent.

   Buildings, furniture and fixtures will not be eligible for constant percentage amortization.

3. Be the result of applying the method of numbers digits . This method is not admissible for buildings, furniture and fixtures.

4. It conforms to a plan formulated by the taxpayer and accepted by the Tax Administration.

5. The taxpayer justifies his amount .

Filling in form 200

In application of the provisions of this provision, the following adjustments will have to be made in boxes [00303] and [00304] "Differences between accounting and tax amortization (art. 12.1 LIS)" of page 12 of model 200:

• When the accounting amortization carried out in the year by the taxpayer for any of the concepts referred to in article 12.1 of the LIS is greater than the taxable amortization as established in said sections, the amount of this excess difference must be entered in box [00303] of increases. Likewise, when the element in subsequent tax periods is amortized for accounting purposes, the amount of said difference must be entered in box [00304] of decreases, as a consequence of the reversal of the positive adjustment, based on of tax amortization.

• And in the event that the taxable amortization is greater than the accounting amortization carried out by the taxpayer for the aforementioned concepts (and it is not the case of an accounting error), the amount of the corresponding difference in the box [00304] of decreases. Likewise, when the element in subsequent tax periods is tax amortized, the amount of said difference must be entered in box [00303] of increases, as a consequence of the reversal of the negative adjustment, based on of accounting amortization.