Low-value assets

As the end of the financial year approaches, remember that your company can freely amortize tangible fixed assets that are newly acquired and have a unit value of up to 300 euros, with an overall limit of 25, 000 euros per year.

Therefore, if this year you have acquired several new assets that can benefit from this incentive, it is advisable that these are broken down in the accounting records with their unit value (so that it is reflected in the accounts that they have a value below 300 euros).

However, for these assets to be freely amortized, they must be able to be used autonomously. For example:

• If your company acquires furniture (chairs and tables), items with an individual acquisition value not exceeding 300 euros can benefit from this incentive, as they are assets that can be used separately.

• On the other hand, your company cannot apply this incentive to the individual components that make up a computer (motherboard, hard drive, graphics card, tower, etc.), even if these have an individual value below 300 euros, as these components cannot be used independently. This would only be possible if the total acquisition value of the computer does not exceed that amount.

When applying this tax benefit, your company must account for the annual depreciation of each asset based on its useful life. However, in your Corporate Tax return, you can calculate a negative non-accounting adjustment by increasing the deducted tax depreciation, and even fiscally amortizing these assets in full.

 

Our professionals will advise you on how to depreciate your assets to delay tax payments as much as possible and on the incentives to which your company is entitled.