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V2737-14 13 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por inversiones medioambientales

Costs for obtaining carbon footprint certification do not qualify for environmental investment tax relief

A company has queried whether the cost of obtaining a carbon footprint certificate can be deducted as an environmental investment. The Directorate General for Taxes (DGT) has ruled that this is not possible, as it constitutes an expense for the current financial year rather than an investment in tangible assets.

The question raised

1) Whether the deduction for environmental investments is applicable to the expense that the company will incur in obtaining the carbon footprint certificate.

The DGT's ruling

The deduction under Article 39.1 of the Corporate Income Tax Law requires investments in tangible assets intended for environmental protection, consisting of installations. The cost of obtaining a carbon footprint certificate is an expense for the fiscal year and not an investment or technical installation. Likewise, the purchase and planting of trees is not considered an installation, and therefore would not entitle one to the deduction.

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