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V4297-16 6 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización lineal

A maximum coefficient of 7% and a 30-year period may be applied to a solar photovoltaic plant

A company requested clarification on the depreciation coefficients and periods applicable to a solar photovoltaic plant under the Corporate Income Tax Act (LIS). The Directorate-General for Taxes (DGT) responded that such an installation may be classified as a renewable energy plant.

The question raised

Following Law 27/2014, of November 27, on Corporate Income Tax, what is the maximum straight-line depreciation coefficient and the maximum depreciation period to be applied to the aforementioned plant.

The DGT's ruling

The photovoltaic plant may be considered included within the "renewable plants" of the depreciation table of Article 12.1.a) of the LIS. Therefore, it is entitled to a maximum straight-line coefficient of 7% and a maximum period of 30 years. Notwithstanding, depreciation shall also be considered effective if the taxpayer justifies its amount pursuant to Article 12.1.e) of the LIS.

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