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V2734-20 7 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · fondo de comercio

150% deduction available for goodwill amortisation for small-scale enterprises

A lottery administration owner enquired whether goodwill amortisation could be deducted for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that, as a small-scale enterprise, the taxpayer may apply a 150% deduction based on the limit of one-twentieth of the amount.

The question raised

Amortization of goodwill that may be deducted in Personal Income Tax.

The DGT's ruling

The determination of net income under the direct estimation method is governed by the rules of Corporate Income Tax. The amortization of goodwill is deductible subject to an annual limit of one twentieth of its amount. If the conditions for small-scale enterprises are met, 150% of the amount resulting from said limit may be deducted.

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