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V2773-21 11 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · fondo de comercio

Goodwill amortisation may be deductible for Personal Income Tax purposes with a 5% annual limit

A taxpayer inquired about the deductibility of goodwill amortisation following the acquisition of a pharmacy. The Directorate General for Taxes (DGT) ruled that Corporate Tax regulations apply, allowing the deduction subject to an annual limit of 5% of the acquisition cost.

The question raised

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

The DGT's ruling

The determination of net income for Personal Income Tax purposes is carried out in accordance with the rules of Corporate Tax. The amortization of goodwill is deductible with a maximum annual limit of one twentieth of its amount (5%). If the conditions for small-scale enterprises are met, 150% of said amount may be deducted. The deduction percentage may be lower than the established maximum.

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