Industrial companies shall not include non-productive furnaces and anti-pollution systems in their installed capacity

The calculation of installed capacity is a determining factor for the determination of the quota for the Economic Activities Tax (IAE) in the industrial sector. A recent binding ruling from the General Directorate of Taxes (DGT) has clarified the scope of this concept, delimiting which elements must be integrated into the capacity calculation for the purposes of the applicable rate.

What the DGT has resolved

The issue raised focused on whether the capacity of certain elements, specifically furnaces and anti-pollution facilities, should be computed to determine the tax rate quota. After analyzing current regulations, the DGT has resolved that the installed capacity to be taken into account is that which is directly related to the productive activity.

Consequently, the capacity of those furnaces or anti-pollution facilities that do not have a direct impact on the production process is excluded from the calculation necessary for the determination of the IAE quota. This criterion is based on the interpretation of the Recast Text of the Mortgage Law Regime (TRLRHL), the Tariff Instruction, and the rate update regulations.

What it means for you

For industrial companies, this criterion represents a technical delimitation regarding the calculation base of their tax. If your activity includes environmental protection infrastructures or thermal equipment that, although necessary for the general operation of the plant, do not intervene directly in the transformation or production cycle, their capacity should not increase the IAE quota.

This prevents an increase in the capacity of auxiliary equipment or emission control systems from automatically resulting in a higher tax burden, provided that the lack of direct impact on production can be proven.

What you should do

Companies should perform a technical analysis of their facilities to clearly distinguish between productive capacity and service or environmental control capacity. It is necessary to have technical documentation that allows for the justification that certain elements, such as anti-pollution systems, fulfill a protection or support function rather than a direct production function, in order to ensure that the calculation of the installed capacity is correct in the event of an inspection.