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V1448-23 26 May 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · inmovilizado material

Depreciation of tangible fixed assets begins when the asset is ready for use in the production process

A query was raised regarding when tangible fixed assets are considered to be in working condition to commence depreciation. The DGT ruled that the accounting concept of being 'ready for use' must be applied.

The question raised

When can it be understood that depreciable fixed assets are ready for use for the purposes of commencing their depreciation.

The DGT's ruling

The depreciation of tangible fixed assets and investment property begins from the moment they are ready for use. In the absence of a tax definition, accounting standards apply, which define this moment as when the assets, following assembly, installation, and testing, can normally participate in the production process. The determination of this moment is a matter of fact that must be substantiated with valid means of proof.

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