Freedom to depreciate (boxes 00311 and 00312)
According to the provisions of the first paragraph of article 11.3 of the LIS , the deduction of the excess of tax amortization by applying the freedom of amortization with respect to accounting amortization is not conditioned to its accounting registration 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 [00312] "Small companies: freedom of amortization (art. 102 LIS)» on page 13 of form 200:
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In box [00312] of decreases, you must include the amount of excess of the tax amortization over the accounting amortization , of the corresponding element or elements, even if said excess is not accounted for. In the tax periods subsequent to the period in which the item or items in question have been fully amortized for tax purposes, you must include in box [00311] of increases the amount of the accounting amortizations remaining on said items.
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In the tax period in which the transfer of the element or elements covered by the freedom of amortization occurs, they must include in box [00311] of increases, the amount of all corresponding negative adjustments made and pending positive integration into the tax base.
Below is an example of how small entities apply free depreciation and how they should transfer these calculations to Form 200 (you can also consult Example 2 in section “ Accelerated depreciation ” on how these entities apply free depreciation and accelerated depreciation together).
Example:
Company "R", which will meet the requirements for the application of tax incentives for small businesses in 2025, has acquired new tangible fixed assets for the amount of 200,000 euros. The acquisition takes place on January 1, 2025, the date on which such elements are made available to 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 the amortizable value coincides with the acquisition price.
The average total workforce of the "R" Company in 2024 was 8.4 employees. Since it does not yet know the average workforce for the twenty-four months following January 1, 2025 (years 2025 and 2026), Company "R" must consider the advisability of determining the amount on which it can fiscally apply the freedom of depreciation, as the increase in average workforce applicable to the figure of 120,000 euros cannot be calculated.
Company "R" decides to freely amortize the entire 200,000 euros in the year 2025 under article 102 of the LIS, given that it considers that it will meet the requirements on increasing the average staff and maintaining it. The accounting provision for amortization is made by applying a coefficient of 20 percent, which the company estimates as effective depreciation of such elements.
Corrections that Company "R" can make to determine the taxable base of the Corporate Income Tax corresponding to 2025 (box [00312]):
| Accounting amortization | Tax amortization | Decrease in profit and loss account result |
|---|---|---|
| 200,000 x 20% = 40,000 | 200,000 | 160,000 |
As of December 31, 2026, Company "R" already knows the average workforce for the twenty-four months between the years 2025 and 2026, which is 10.6 workers. So,
Pm(2025 - 2026) - Pm2024 = 10.6 - 8.4 = 2.2
The limit applicable to the freedom of amortization carried out in 2025 is 2.2 x 120,000 = 264,000. Thus, Company "R", by freely amortizing 200,000 euros in 2025, did not exceed the aforementioned limit.
Furthermore, assuming that the average workforce in the years 2027 and 2028 has been 10.8 workers, the increase in the average workforce in these years, compared to 2024, is 2.4 (10.8 - 8.4). In this way, the "R" Company has maintained the increase in staff of 2.2 workers for the years 2025-2026 compared to the year 2024. In short, Company "R" has met all the requirements to be tax-deductible in 2025> the amortization of 200,000 euros carried out.
In this case, the corrections to be made in the following exercises (boxes [00311] and [00312]) will be:
| Financial year | Accounting amortization | Tax amortization | Correction | Form 200 |
|---|---|---|---|---|
| 2025 | 200,000 x 20% = 40,000 | 200,000 | -160,000 | [00312] |
| 2026 | 200,000 x 20% = 40,000 | --- | +40,000 | [00311] |
| 2027 | 200,000 x 20% = 40,000 | --- | +40,000 | [00311] |
| 2028 | 200,000 x 20% = 40,000 | --- | +40,000 | [00311] |
| 2029 | 200,000 x 20% = 40,000 | --- | +40,000 | [00311] |
Total accounting depreciation = 40,000 + 40,000 + 40,000 + 40,000 + 40,000 = 200,000
Total tax amortization = 200,000