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V3305-14 11 December 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización acelerada

Reversal of accelerated depreciation occurs when tax value is nil or in the year of disposal

A company asks whether it can reverse all temporary differences arising from the accelerated depreciation of a premises acquired in 1998 within a single financial year. The DGT rules that reversal occurs when the tax value of the property reaches zero or, in the event of a sale, during the tax period of the disposal.

The question raised

Whether it would be possible, within the same fiscal year, to reverse all temporary differences generated since the acquisition of the real estate in 1998.

The DGT's ruling

The reversal of accelerated depreciation adjustments occurs at the time when the tax value of the real estate becomes zero, due to the difference between tax and accounting depreciation. If the real estate is transferred, the entirety of the negative adjustments made through accelerated depreciation shall reverse in the tax period of the transfer.

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