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V0271-15 ·23 January 2015 ·consulta-vinculante Medium impact
Tax

Renovation, expansion or improvement works may be treated as new fixed assets if they increase book value

A hotel company has enquired whether renovation, expansion, and improvement works to its building can be considered new items of tangible fixed assets for tax purposes. The DGT has ruled that, in the absence of specific regulations within Corporate Tax, accounting standards must be applied.

In 6 key points

How it affects those involved

Companies must ensure that any capital expenditure on building improvements is strictly aligned with accounting principles to be recognised as fixed assets for tax purposes.

Lifecycle

2015-01-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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