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V0406-16 2 February 2016 · SG de Tributos Locales Criterion in force
OTRO · potencia instalada

Installed capacity does not include elements not directly related to production

A tobacco manufacturing company has requested clarification on which energy elements must be included when calculating installed capacity for the Economic Activities Tax (IAE). The Directorate-General for Taxes (DGT) has ruled that only elements directly related to the production process are to be taken into account.

The question raised

Consideration of various energy elements for the purpose of including or excluding them from the calculation of the taxable element of installed power.

The DGT's ruling

The taxable installed power is the sum of the nominal powers of the electrical or mechanical elements directly used for production. Storage elements, raw material transport at the beginning of the process, quality control laboratories, and climate control for occupational hygiene are not included unless they are essential for the process. However, elements that link stages of the production process, such as pneumatic transport or belts between machinery, are included. In the case of boilers, only the power of those operating with electrical energy is included.

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