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V4298-16 6 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · amortización

Solar photovoltaic plants may be amortised as renewable power plants with a maximum rate of 7%

A company requested clarification on whether a solar photovoltaic plant should be amortised as a 'renewable power plant' (7% per annum, 30 years) or as 'other elements' (10% per annum, 20 years). The Directorate-General for Traffic (DGT) has ruled that it can indeed be considered a renewable power plant.

The question raised

Whether a solar photovoltaic plant can be considered a "Renewable power plant" and therefore, in that case, would have to undergo depreciation according to the tables at the maximum straight-line coefficient of 7% and a maximum period of 30 years. Or if, on the contrary, it remains as "Other elements" and therefore continues to be depreciated at the maximum straight-line coefficient of 10% and a maximum period of 20 years.

The DGT's ruling

Facilities where electricity is produced through solar photovoltaic energy constitute a renewable power plant according to the depreciation schedule of Article 12.1.a) of the LIS. Therefore, a maximum straight-line coefficient of 7% and a maximum period of 30 years apply. This is determined by applying the literal meaning of the words and social reality, considering that a power plant is an energy production facility and solar is a renewable source.

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