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V0405-19 27 February 2019 · SG de Tributos Locales Criterion in force
OTRO · potencia instalada

Only installed capacity of energy elements directly used for production is taken into account

A company requested clarification on whether certain energy elements should be included in the calculation of installed capacity for the Economic Activities Tax (IAE). The Directorate General for Taxes (DGT) ruled that only the capacity of elements directly used in the production process is to be included.

The question raised

Computation or non-computation of certain machinery for the purposes of calculating the quotas relating to group 346 and heading 482.2 of the first section of the Economic Activities Tax Schedules.

The DGT's ruling

To determine the taxable installed power, it must be verified whether the element is directly used for production. The power of machinery essential to the process, such as compressors, mills, or cleanroom equipment for contamination control, shall be computed. The power of elements such as elevators, climate control for hygiene, or forklifts shall not be computed, unless they form part of the production phases. In the case of test benches, 10% of the actual installed power shall be computed.

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