In a context of energy uncertainty derived from the geopolitical situation in Europe, Spain has approved new tax measures in the field of Personal and Corporate income tax aimed at improving the energy efficiency of companies and individuals.

While the measure in the field of personal income tax consists in extending by one year the application of tax relief for works that allow reducing the primary non-renewable energy consumption or the heating and refrigeration demand in home dwellings, the measure in the area of corporate income tax is an authentic new measure by introducing free depreciation on investments used for self-consumption of electric energy and thermal energy for self-consumption.

  • In order to face the current situation, on October 11th, the Spanish Council of Ministers adopted the Plan More Energy Security (Plan +SE), which includes seventy-three measures grouped around objectives such as the energetic and industry system transformation thanks to renewable energies or hydrogen. Measure 55 introduces the new free depreciation scheme in the Corporate income tax.
  • This measure benefits:
    • Investments in systems used for the own consumption of electrical energy using renewable energy (as defined in Royal Decree 244 / 2019) as well as systems for the thermal use for self-consumption using renewable energy and replacing systems using energy not proceeding from non-renewable fossil fuel sources. The regulations determine what is considered renewable energy as well as the documentation required to prove the use of the systems.
    • Such systems:
      • must be made available to the taxpayer from the date of entry into force of Royal Decree Law 18 / 2022 of 18 October which is the regulator of these measures, i.e., from October 20th, 2022.
      • Its entry into force must take place in 2023.
    • Buildings are excluded from this measure.
  • The freedom of depreciation may be applied in fiscal years beginning or concluding in 2023.
  • The maximum amount that may benefit from the free depreciation scheme is 500,000 euros.
  • It is required that during the 24 months following the starting date of the fiscal year in which the acquired assets come into operation, the total average staff is maintained with respect to the average staff of the twelve preceding months. If this requirement is not met, Corporate income tax corresponding to the excess depreciation shall be refunded, together with late payment interest, in the tax return of the fiscal year of the breach.
  • Small-sized companies may elect to apply this free depreciation scheme or free depreciation for the creation and maintenance of employment.
  • It is, therefore, a new optional scheme of temporary application within the indicated tax periods.

  • Publicado el 11-2022 por PBS