Here are the purchases or current purchases of goods or goods made to third parties, provided they meet the following two requirements:

• That they are made to obtain the income.
• That they are assets that are part of the current assets and that they are not part of it on the last day of the tax period or, in other words, that they have been transferred with or without prior transformation.

The following are considered included in this concept, among others, the acquisitions of: merchandise, raw and auxiliary materials, fuels, elements and incorporable sets, containers, packaging, office supplies, etc., consumed in the year.

The accessory costs, such as transportation, insurance, loading and unloading, etc. must be included in the purchase price.

The term "consumed" refers to the fact that only the goods applied to the activity during the year should be computed as an expense. This magnitude will be given by the result of adding to the initial stock of such goods, the acquisitions made during the year, and of reducing that sum in the value of the final stocks of the period.

With regard to the valuation criteria for inventories, it should be emphasized that the value of the final ones, which must coincide with the value of the initials of the following year, can be determined by their acquisition price or production cost, being accepted as valuation criteria for homogeneous stock groups the weighted average cost. The FIFO, LIFO or other analogous methods based on the purchase price are equally admissible if the company considers them more convenient for its management

I. Wages and salaries

Here we will include the amounts accrued by third parties by virtue of an employment relationship. These include salaries, extra payments, allowances and allowances for travel expenses, remuneration in kind (including the corresponding deposit on account, provided that it has not been passed on to the recipients), as well as prizes or compensations paid (even if they are exempt from income tax for the recipient).

II. Social Security in charge of the company (including the owner's contributions)

This item includes Social Security paid by the company, as well as the contributions paid by the owner of the economic activity (AUTONOMOUS fee). Notes with reference to the contributions to Social Security Mutuals of the entrepreneur or professional:

• Contributions to social security mutual funds of the employer or professional, do not constitute a deductible expense for the determination of the net return of the activity, given that they may reduce the taxpayer's taxable base in accordance with the requirements and limits established for such purposes. effect.
• The amounts paid under insurance contracts entered into with social security mutuals by professionals not included in the special Social Security scheme for self-employed or self-employed workers are considered as deductible expense of the activity.

III. Other personnel expenses

In this section we can include personnel training expenses, both habitual and sporadic, compensations paid for rescission of labor relations, accident insurance for personnel and any other related to the personnel at the service of the activity that can not be considered as pure liberality.

The expenses that according to the uses and customs are made with respect to the personnel of the company (gifts, Christmas baskets, etc.) are not considered as pure bounties, for what can constitute deductible expenses.

I. Research and Development Expenses.

Should be ordered from third parties

II. Leases and fees.

We can include within this section all the expenses originated in terms of rents, fees, technical assistance, etc., for the cession to the taxpayer of goods or rights that are affected to the activity, when ownership is not acquired.

Leasing contracts "leasing".

With the entry into force of Law 43/1995, of December 27, of Corporation Tax, the tax regime of assets used under financial leasing contracts " leasing ", is different depending on the date of celebration of the same and the delivery of the goods that constitute its object ..

Contracts entered into as of January 1, 1996.

The tax regime corresponding to these contracts, and even those previously executed in which the goods subject to them have been delivered as of January 1, 1996, It is characterized by the following notes:

• The financial burden of each installment paid to the leasing institution constitutes a deductible expense.
• The part of the quota corresponding to the recovery of the cost of the good is considered as a deductible expense, provided it is an amortizable asset and its amount does not exceed the result of applying to the cost of the asset twice the linear depreciation coefficient. the officially approved amortization tables.

If the economic activity has the fiscal consideration of a small company, the coefficient of linear amortization according to tables will be multiplied by three for these purposes.

III. Services of independent professionals.

This section includes the amount that professionals are satisfied for the services provided to the economic activity. It includes the fees of managers, lawyers, auditors, notaries, etc., as well as the commissions of independent mediating agents.

IV. Transportation.

Transports are included for the sales we make.

V. Banking and similar services.

We can include the bank commissions, among others

SAW. Advertising, propaganda and public relations.

We can include the ads in Yellow Pages, in Google, among others.

VII. Supplies

Included within this concept is the amount of the expenses corresponding to electricity and any other supply that does not have the storable quality. (Water, telephone, gas, etc ...)

In many cases, if you do not have a place 100% dedicated to the activity, we are faced with the dilemma of exclusivity. But the truth is that if we have a room dedicated to office we can establish a reasonable percentage of the use we make of the different supplies. especially Light, Telephony and Internet Access.

VIII. Repair and Conservation Expenses.

Included in this section are the costs of conservation and repair of the affected asset:

• Those carried out regularly in order to maintain the normal use of material goods.
• Replacement of items that are not subject to amortization and whose disabling is the result of the operation or normal use of the assets in which they are integrated.
• Those of adaptation or readaptation of tangible elements of the fixed assets, when they do not imply an increase in their value or productive capacity.

Maintenance or repair costs shall not be considered as expenses that entail an extension or improvement of the tangible asset and are, therefore, redeemable.
XI. Insurance Premiums.

A) Policies in general.

Loss insurance policies, in general.

B) Illness policies

The health insurance premiums paid by the taxpayer in the part corresponding to their own coverage and that of their spouse and children under twenty-five years of age are considered deductible expenses. with the. The maximum deduction limit will be 500 euros for each of them. Order of March 27, 1998. (BOE of 28).
XII Tax-deductible taxes.

This concept includes non-state taxes and surcharges, parafiscal levies, fees, surcharges and special state contributions that are not legally applicable, as long as they affect computed returns. they have sanctioning character and correspond to the same exercise that the income.

Examples of non-state taxes:

Tax on Real Estate (IBI) corresponding to the economic activity developed. < p>

In no case are the penalties, the penalty surcharge and the late filing of tax returns-tax deductible expenses considered deductible.

This includes all expenses derived from the use of external financial resources, to finance the activities of the company or its assets.

Among others, we can include the following:

• Expenses for discounting the effects and financing the operating credits of the company.
• Surcharge for deferment of debts corresponding to the activity.
• Default interest corresponding to deferrals and subdivisions of tax debts, as well as those derived from administrative settlements, provided they are directly related to the activity and correspond to the fiscal year.

On the contrary, they are not considered as deductible financial expenses:

• Those that suppose a greater cost of acquisition of patrimonial elements.
• Those that derive from the use of own capital.

They correspond to the provisions of the fiscal year deductible and include the amount of the deterioration of the assets and rights of tangible or intangible assets affected by the activity, provided that it responds to the effective depreciation suffered by the various elements due to operation, use, enjoyment or obsolescence.

The tax deductibility of amortizations is conditional upon compliance with a series of requirements and general rules, among which the following should be noted:

General requirements:

● Effectiveness of amortization.

The annual depreciation must reflect the effective depreciation of the item in that same period. It is understood that depreciation is effective when:

The annual depreciation must reflect the effective depreciation of the item in that same period. It is understood that depreciation is effective when:

A) Be the result of applying the linear amortization coefficients established in the amortization tables approved as an annex to Royal Decree 1777/2004, of July 30, whereby approves the Regulation of the Corporation Tax (BOE of August 6).

B) Be the result of applying a constant percentage on the pending depreciation value.

This constant percentage will be determined by weighting the coefficient of linear amortization according to tables by the following coefficients:

• 1.5 if the item has a repayment period of less than 5 years.
• 2 if the item has a repayment period equal to or greater than 5 years and less than 8 years.
• 2,5 if the item has a repayment period equal to or greater than 8 years.

The constant percentage thus determined may not be less than 11 percent.

c) Be the result of applying the digit number method.

The sum of digits will be determined based on the amortization period established in the officially approved tables.

d) Follows a plan formulated by the taxpayer and accepted by the tax administration.

e) The taxpayer justifies the amount.

■ TO BE CONSIDERED: For the acquisitions of new assets made between January 1, 2003 and December 31, 2004, the maximum linear amortization coefficients established in the officially approved amortization tables will increase by 10%. The new coefficient will be applicable during the useful life of the new assets
acquired in the period indicated above.

● Accounting of the provisions.

In accordance with the precepts of the Commercial Code and the General Accounting Plan, accounting for depreciation allowances, with the exceptions that will be discussed below for freedom of amortization and accelerated depreciation, meets the general requirement of justification required for all deductible expenses.

For non-commercial entrepreneurs and professionals, this requirement will refer to the annotation in their register of investment assets of the annual amortization fee corresponding to each of said assets.

● Amortization rules.

● Basis of depreciation.

The base of the amortization is constituted by the cost of acquisition of the element, including the additional expenses that take place until its put in operating conditions, or by its cost of production. In the event of acquisition of assets and subsequent impact on the economic activity carried out, the amortization will take as a basis the acquisition value that the assets had at the time of the affectation.

● Start of depreciation computation.

The amortization will be made from the putting in operation conditions of the element if it belongs to the tangible fixed assets, or from the moment in which they are able to produce income if it belongs to the fixed assets immaterial, and will last for the period of the element's useful life.

● Individualization of endowments.

Amortization should be done individually, item by element. In the case of equity assets of an analogous nature or subject to a similar degree of use, the amortization may be applied to all of them, but at all times it must be possible to know the part of the accumulated depreciation corresponding to each patrimonial element.

● Items of property, plant and equipment purchased acquired.

The amortization calculation will be made according to one of the following criteria:

A) If the acquisition value of the used item is taken as the basis for the depreciation, the maximum usable coefficient will be double that set in the depreciation tables for that item.

B) If the acquisition price or original production cost is taken as the basis for amortization, the maximum linear amortization coefficient set in the amortization tables for that item shall be applied.

For these purposes, buildings whose antiquity is less than ten years will not be considered as heritage elements.

● Excess depreciation.

The allocation in an exercise of amortizations higher than those allowed fiscally does not constitute a deductible expense, without prejudice to the fact that the excess may be in subsequent periods.

■ TO BE CONSIDERED: In both the normal and the simplified form of the direct estimation method, the holders of economic activities that are considered as fiscal by small companies may apply the tax incentives that in relation to the amortizations are established for these companies.

■ Tax specialties for depreciation in simplified mode.

In the simplified form of the direct estimation system, depreciation of property, plant and equipment will be carried out on a straight-line basis, based on the simplified amortization table approved by the Provisions for risks and expenses .

Losses and Expenses that occur outside of ordinary activities and that are not expected to happen again on a regular basis.

For example, office expenses not included in other sections.