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V2907-16 ·23 June 2016 ·consulta-vinculante Medium impact
Tax

Citrus trees may be amortised if their value is justified and effective depreciation is met

A small-scale company inquired whether it could separate the value of citrus trees from the land through an expert report and apply depreciation incentives for small businesses. The Directorate General for Taxes (DGT) ruled that such separation is possible if the price is justified, but noted that trees already in production are not considered new assets, and therefore do not qualify for the incentives provided under the Corporate Income Tax Act (LIS).

In 6 key points

How it affects those involved

This ruling clarifies the requirements for separating biological assets from land for accounting purposes and limits the application of specific tax incentives to newly acquired assets.

Lifecycle

2016-06-23PublishedPublished 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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