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V4291-16 6 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización acelerada

Useful life is determined using the maximum table coefficient, followed by acceleration via tax incentive

A company has requested clarification on how to calculate the new useful life of an asset when applying the accelerated depreciation incentive (multiplying the maximum coefficient by two) following regulatory changes. The Directorate General for Taxes (DGT) has ruled that useful life is determined according to the coefficient in the table, and that the incentive allows for the acceleration of said depreciation to complete it before the end of the useful life.

The question raised

Regarding tangible fixed assets, when the table method is used and the accelerated depreciation tax incentive is applied by multiplying the maximum coefficient by 2, a doubt arises regarding the determination of the resulting new maximum depreciation coefficient in relation to the calculation of the new useful life:

The DGT's ruling

The new useful life must be determined based on the maximum linear coefficient provided in the LIS table. Once that useful life is determined, the incentive under Article 103 of the LIS is applied by multiplying the coefficient to be used for depreciation by 2. This allows the depreciation to be completed before the useful life of the asset expires.

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