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V2169-24 ·9 October 2024 ·consulta-vinculante Medium impact
Tax

Current expenses are deductible when incurred, while investments are depreciated once the plantation begins production

A query was raised regarding the deductibility of expenses and investments in a truffle oak plantation prior to generating income. The DGT clarifies that current expenses are allocated to the period in which they are incurred, whereas investments are depreciated once the plantation becomes operational.

In 6 key points

How it affects those involved

This ruling provides legal certainty for agricultural businesses regarding the timing of tax deductions for setup costs and capital investments in long-term crops.

Lifecycle

2024-10-09PublishedPublished 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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