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V0174-21 3 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa simplificada

Maximum depreciation rate for olive groves under simplified direct estimation is 2%

A taxpayer engaged in olive farming seeks clarification on the applicable depreciation rate under the simplified direct estimation method. The Directorate General for Taxes (DGT) rules that the 2% rate specified in the simplified depreciation table must be applied, though this may be doubled in certain instances in accordance with the Corporate Tax Act.

The question raised

Maximum applicable depreciation coefficient.

The DGT's ruling

Under the simplified direct estimation regime, depreciation of tangible fixed assets is carried out on a straight-line basis according to the simplified depreciation table. For olive groves, the maximum straight-line coefficient is 2 percent. However, the depreciation regime for new tangible fixed assets provided for in Article 103 of the Corporate Income Tax Law may be applied to the resulting amount, which allows for the maximum straight-line coefficient to be multiplied by 2.

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