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V3210-21 ·23 December 2021 ·consulta-vinculante Medium impact
Tax

Total cost of an investment asset cannot be allocated to a single period under the group of entities regime

A company enquired whether it could allocate the entire cost of refurbishment works to a single tax period within the group of entities regime (advanced modality). The Directorate General of Taxes (DGT) ruled that the allocation must be spread linearly throughout the adjustment period.

In 5 key points

How it affects those involved

Companies operating under the group of entities regime must ensure that the costs of investment assets are amortised or allocated linearly over the adjustment period rather than being charged to a single period.

Lifecycle

2021-12-23PublishedPublished 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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