7.5.4.6. Amortisation and depreciation

Except in forestry activities, the amounts that, in the concept of amortization of fixed assets, whether tangible or intangible, correspond to the effective depreciation suffered by the different elements due to operation, use, enjoyment or obsolescence, will be deductible.

Depreciation will be considered effective when it is the result of applying any of the following coefficients to the acquisition price or production cost of the fixed asset:

1. The maximum linear amortization coefficient.

2. The minimum linear amortization coefficient that is derived from the maximum amortization period.

3. Any other linear amortization coefficient between the two previously mentioned.

However, new tangible fixed assets made available to the taxpayer in the tax period, the unit value of which does not exceed 601.01 euros, may be freely depreciated, up to the limit of 3,005.06 euros referring to the tax period.

The Amortization Table is as follows:

The acquisition price or production cost will be amortizable, excluding, where applicable, the residual value.

In buildings, the part of the acquisition price corresponding to the value of the land will not be amortizable; when this is not known, it will be calculated by prorating the acquisition price between the cadastral values of the land and the construction in the year of acquisition.

Amortization will be carried out on an element-by-element basis, although when it concerns assets integrated into the same Group of the Amortization Table, amortization may be carried out on all of them, provided that the portion of the amortization corresponding to each asset can be known at all times.

The assets of tangible fixed assets will begin to be depreciated from the moment they are put into working order, and intangible fixed assets from the moment they are ready to generate income.

The useful life may not exceed the maximum amortization period established in the Amortization Table.

The calculation of the depreciation of the assets of tangible fixed assets that are acquired used will be carried out on the basis of the acquisition price, up to the limit resulting from multiplying by two the amount derived from applying the maximum linear depreciation coefficient.

In the event of transfer of use of assets with an option to purchase or renew, when due to the economic conditions of the operation there are no reasonable doubts that one or the other option will be exercised, the transferee shall be deductible, as amortization, an amount equivalent to the amortization instalments that would correspond to the aforementioned assets, applying the linear coefficient to the acquisition price or production cost of the asset.

In any case, in order to reduce depreciation, it is essential to have documentary evidence of the acquisition of the depreciable items and that they are duly recorded in the investment asset register.

Attention: For the calculation of the net yield from forestry activities, amortizations will not be deducted.

ACQUISITION OF ASSETS BETWEEN JANUARY 1, 2003 AND DECEMBER 31, 2004.

For acquisitions of new assets made between January 1, 2003 and December 31, 2004, the maximum linear amortization coefficients established in the official amortization coefficient tables shall be understood to be replaced, in all references to them, by the result of multiplying those by 1.1. The new coefficient will be applicable during the useful life of the new assets acquired in the aforementioned period.

COMPLETION

In order to correctly apply the corrective indices on the previous net performance corresponding to each type of operation, for the keys of activity "1. Agricultural and livestock farming likely to be included in the AG RE and P. of VAT " , "2. Independent livestock farming" and "5. Benefits corresponding to the transferor in agricultural activities under a sharecropping regime" , the deductible amounts in the fiscal year as amortization must be differentiated through a data capture window, according to the part that is reasonably attributed to the different crops and farms (or services provided), according to the following detail:

1. Elements used in agricultural activities: The amount of depreciation of fixed assets linked to agricultural crops developed by the taxpayer will be indicated, distinguishing, in turn, the part corresponding to crops on own land and on leased land.

2. Elements used in livestock activities: The amount of the depreciation of the fixed assets linked to the livestock farms developed by the taxpayer will be indicated, distinguishing, in turn, the part that corresponds to intensive farms of beef pigs and poultry farming from the rest of the livestock farms that, where applicable, are carried out.

3. Elements used in accessory works and services: The amount of depreciation of fixed assets linked to the accessory work and services provided by the farmer or rancher will be indicated.