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V1086-16 17 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · libertad de amortización

Freedom of depreciation may apply to mining assets if directly linked to the activity

A company engaged in limestone extraction has requested clarification on whether it can apply the freedom of depreciation provided for in Article 90 of the Corporate Income Tax Act. The Directorate General for Taxes (DGT) has ruled that this is possible for assets directly linked to the mining activity process.

The question raised

Whether it is possible to apply the immediate depreciation provided for in Article 90 of Law 27/2014, of November 27, on Corporate Income Tax to the elements acquired in said mining exploitation and previously referenced.

The DGT's ruling

Entities engaged in the exploitation of mineral deposits may benefit from immediate depreciation for a period of 10 years on their mining assets. Such assets are understood to be the fixed assets directly integrated into the mining activity process, such as land, subsoil, exploitation rights, and related machinery. Assets that are not directly linked to said activities are excluded.

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