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V3421-16 19 July 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización contable

The option to deduct previously undeducted depreciation may be exercised item by item

The inquiry asks whether the option to deduct limited depreciation (30%) based on the asset's useful life, rather than over 10 years, must be mandatory for all assets or if it can be applied individually. The DGT responds that the option may be exercised individually for each specific asset.

The question raised

If the choice or option for the reversal of the non-deducted 30% expense is made based on the useful life of the asset instead of performing it linearly over a ten-year period, can it be carried out only for certain assets individually, or must one necessarily opt for all assets, and in this case, would it be necessary for all companies taxed under the tax group regime in Corporate Tax to opt in?

The DGT's ruling

The accounting depreciation not deducted due to the limitation of Law 16/2012 may be deducted linearly over 10 years or, optionally, over the useful life of the asset. This option may be exercised individually, asset by asset, or by opting for one of the two methods for all assets. If the useful life is chosen, a reversal of the outstanding amounts will occur in the event of a transfer of the asset to third parties.

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