Skip to content
Back to index
V0612-25 1 April 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · inmovilizado material

Livestock for breeding or milk production is tangible depreciable asset

A farmer asks whether lambs born on his farm can be considered a tangible depreciable asset. The DGT responds that they can be classified as such and their value will be the production cost.

The question raised

Possibility of considering them as fixed assets in order to depreciate them and deduct the corresponding expense when calculating the net income of their activity.

The DGT's ruling

Livestock intended for breeding or milk production is a depreciable tangible asset and its depreciation is a deductible expense. As it is produced by the company itself, the depreciation base shall be its production cost. This cost is obtained by adding directly and indirectly attributable costs to the price of raw materials. The production cost of these elements shall be considered business income for the calculation of net income.

Book your free first meeting