Freedom to amortise investments in the electric, sustainable or connected mobility value chain

The sixteenth Additional Provision of the LIS , as amended by the eighth Final Provision of Royal Decree-Law 34/2020, of November 17, regulates a freedom of amortization for investments made in the electric, sustainable or connected mobility value chain that may be made in the tax periods ending between April 2, 2020 and June 30, 2021.

Thus, investments in new elements of tangible fixed assets that involve the sensing and monitoring of the production chain, as well as the implementation of manufacturing systems based on modular platforms or that reduce the environmental impact, affected by the automotive industrial sector, made available to the taxpayer and that come into operation between April 2, 2020 and June 30, 2021, may be freely amortized, provided that, during the 24 months following the start date of the tax period in which the acquired elements come into operation, the total average workforce of the entity remains with respect to the average workforce for the year 2019.

The properties will not be eligible for the freedom of amortization regulated in this provision.

The maximum amount of the investment that may benefit from the free amortization regime will be 500,000 euros.

In addition, to apply this assumption of freedom of amortization, taxpayers must provide reasoned report issued by the Ministry of Industry, Trade and Tourism to qualify the taxpayer's investment as suitable. This report will be binding on the tax authorities. This measure is under the Temporary National Framework for support measures to support the economy in the context of the current COVID-19 outbreak , following European Commission Decisions SA56851(2020/N) of 2 April 2020, SA.57019 (2020/N) of 24 April 2020 and SA.58778 (2020/N) of 22 October 2020.

You can consult the particularities of this assumption of freedom of amortization and how it is declared in form 200, in Chapter 5 of this Practical Manual.