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V2232-19 20 August 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización

Linen (tablecloths, towels and sheets) must be depreciated at the maximum linear rate of 25% if using the table method

A cleaning services company requested clarification on the depreciation method applicable to tablecloths, towels and sheets. The DGT has ruled that these items are classified as linen and must adhere to the limits set by the linear depreciation table.

The question raised

What is the appropriate depreciation method for the described items, in accordance with Corporate Income Tax regulations.

The DGT's ruling

Tablecloths, towels, and sheets are characterized as furniture and household goods, specifically under the concept of linen. As this is not tax-defined, the common meaning of the term applies. Therefore, if the method provided in the table of Article 12.1.a) of the LIS is used, the maximum straight-line coefficient of 25% and a maximum period of 8 years must be applied. The constant percentage or declining balance methods cannot be applied.

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