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V1764-14 4 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización acelerada

Accelerated depreciation cannot be applied if assets contributed were already used by the sole trader (except under tax neutrality)

A company has enquired whether it can apply accelerated depreciation for small enterprises to assets received through a non-monetary contribution from a sole trader. The Directorate General for Taxes (DGT) responds that it depends on whether the contribution fell under the tax neutrality regime and whether the assets were new.

The question raised

Whether the consulting entity can apply, in the 2013 financial year, the accelerated depreciation established for small-sized entities in relation to the assets acquired through non-monetary contribution from the sole proprietorship.

The DGT's ruling

If the contribution was subject to the tax neutrality regime, the accelerated depreciation incentive is maintained in the acquiring entity under the same terms as the transferor. If it was not subject to said regime, the entity may only benefit if the assets were new and had not been previously used by the sole trader or any other subject. Since the assets were already being used in the activity of the sole trader, the requirements for accelerated depreciation are not met if there was no tax neutrality.

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