If your company detects that in past years it did not account for any amortization, know that you may be able to "recover" it and deduct it in the current year. To do this, it is necessary that the act of accounting for such pending amortization in a subsequent year does not imply a lower taxation for Corporate Tax .

As it is a correction of an accounting error, your company must account for the pending amortization against reserves, and not as an expense of the year. On the other hand, in order to deduct the expense for amortization when presenting the Corporate Tax, you must compute a negative adjustment equal to that pending amortization.

However, when computing the pending amortization, you must respect the following limits:

• On one hand, the recoverable amortization cannot exceed the minimum amortization (that is, the result of applying the minimum amortization coefficient from the tax tables).
• In addition, the amortization of the current year in which you regularize the situation must be the maximum applicable according to those tables.

See below an example of how to account for an amortization that was not accounted for in previous years when it should have been...

On January 1,2024, your company acquired a van for 20,000 euros. The maximum amortization coefficient according to the tables is 16% and the minimum is 7.14%. Well, if in 2024 and 2025 you did not account for amortizations for the van and want to recover them at the end of 2026, account for the amortization of the year 2026 applying the maximum coefficient according to the tables (16%) and then account for the minimum amortization of 2024 and 2025 against reserves (computing a negative adjustment of the same amount in the Corporate Tax):

 

1. In the year 2026, the maximum amortization of that fiscal year and the minimum amortizations of 2024 and 2025 are accounted for.

Our professionals will advise you on the correct way to account for your operations and how to correct any accounting errors that may occur.