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V0935-15 25 March 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · libertad de amortización

The turnover threshold for freedom of depreciation applies at the individual level of the company

A company belonging to a group with a turnover exceeding 10 million euros inquires whether the turnover threshold for applying freedom of depreciation is calculated individually or on a group basis. The DGT responds that the requirements of Article 108.1 of the TRLIS must be met individually by the entity.

The question raised

Question raised 1) Whether the limit of the net amount of turnover referred to in Article 108.1 of the Corporate Income Tax Law, from which the freedom of depreciation established in the second paragraph of the thirty-seventh additional provision of the Corporate Income Tax Law applies, must be computed at the individual level of the taxpayer or whether the net amount of turnover of the group of companies to which the company belongs must be taken into account.

The DGT's ruling

To determine whether the requirements of Article 108.1 of the TRLIS are met and to apply the limits of the thirty-seventh transitional provision, it must be understood that said requirements are met at the individual level of the entity. The level of the group of companies to which the entity belongs, pursuant to Article 42 of the Commercial Code, must not be considered. Likewise, the economic activity is considered to have commenced with its effective development, without including preliminary phases.

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