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V0190-19 29 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · amortización

Assets of an acquired business must be depreciated individually

A taxpayer has requested clarification on how to depreciate the assets (licences, furniture, machinery, etc.) of a mechanical workshop acquired through a business transfer. The Directorate General of Taxes (DGT) has ruled that depreciation must be carried out on an item-by-item basis, following the simplified depreciation tables.

The question raised

How should the assets comprising the acquired business be depreciated.

The DGT's ruling

The assets comprising tangible fixed assets, intangible assets, and real estate investments that are part of the business must be depreciated individually, that is, element by element. Under the simplified direct estimation regime, depreciation of tangible fixed assets is applied on a straight-line basis according to the simplified depreciation table approved by the Minister of Finance.

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