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V1838-18 ·22 June 2018 ·consulta-vinculante Medium impact
Tax

Constant percentage or sum-of-the-digits methods may be applied to depreciation of cinematographic exploitation rights

A company requested clarification on the linear depreciation coefficient to apply to exploitation rights of cinematographic works acquired in perpetuity. The Directorate General for Tax (DGT) indicates that, in addition to the straight-line method, constant percentage or sum-of-the-digits methods may be used provided legal requirements are met.

In 6 key points

How it affects those involved

This ruling provides greater flexibility for companies in determining the depreciation methods for intangible assets related to film rights, allowing for non-linear approaches if justified.

Lifecycle

2018-06-22PublishedPublished 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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