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V4445-16 17 October 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · arrendamiento financiero

Ship construction period may be calculated from the start of steel cutting until delivery

A query was raised regarding whether, to satisfy the 12-month construction requirement in a ship finance lease, the period should be counted from the start of works until final delivery. The Directorate General for Taxes (DGT) ruled that the construction period begins with the start of steel cutting and ends with the delivery of the vessel.

The question raised

Whether, for the purposes of the period provided for in Article 106.8.b) of the LIS, the time elapsed from the start of the vessel's construction until the moment its construction is completed by the shipyard and it is delivered must be counted, regardless of whether ownership is transferred to the shipowner at an earlier stage on the occasion of the vessel's launching.

The DGT's ruling

To apply the accelerated depreciation provided for in Article 106.8.b) of the LIS, the construction period must be at least 12 months. In the case of vessels, this period begins with the start of the steel cutting and ends with the delivery of the vessel. This calculation is independent of whether ownership is transferred to the shipowner at an earlier stage, such as at the time of launching. The entity must acquire ownership through the exercise of the purchase option.

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