Legislative Decree No. 1488 establishes a special and temporary depreciation regime for fixed assets, aimed at promoting investment and providing liquidity to companies in the context of economic reactivation.
Main Provisions of the Decree
The resolution focuses on specific acceleration rates for certain types of assets, provided they meet certain acquisition and construction requirements:
- Buildings and Constructions: A special depreciation rate of 20% per year is established, provided that construction began after January 1, 2020, and is at least 80% completed by December 31, 2022.
- Equipment and Machinery: For assets acquired in the years 2020 and 2021, higher depreciation percentages are allowed depending on the category (e.g., data processing equipment at 50%, transport units at 33.3%, etc.).
Requirements for Application
To benefit from these rates, entities must ensure:
- Registration in the Fixed Asset Ledger: The assets must be duly identified and registered in the accounting records.
- Acquisition Dates: The acquisition or construction must have occurred within the timeframe specified by the decree.
- Exclusivity: This regime cannot be combined with other depreciation benefits for the same asset.
Tax and Financial Impact
The application of LD 1488 allows for a greater deduction of expenses in the short term, which reduces the Income Tax base in the first years of the asset’s useful life. From an accounting perspective, this may generate deferred tax liabilities as the tax depreciation rate differs from the accounting rate determined by the asset’s economic use.
