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V0540-20 6 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · fondo de comercio

150% deduction of goodwill amortisation permitted for small-scale enterprises

A pharmacy owner enquired about the deductibility limits for goodwill amortisation under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) clarified that while the general limit is one-twentieth of the amount, small-scale enterprises may apply a 150% deduction on said amount.

The question raised

Amortization of goodwill that may be deducted in Personal Income Tax.

The DGT's ruling

The amortization of goodwill is deductible subject to a maximum annual limit of one twentieth of its amount. However, if the entity meets the conditions of a small-scale enterprise, it may deduct 150% of the amount resulting from applying said limit. This applies to intangible fixed assets whose useful life cannot be reliably estimated, including goodwill.

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