To answer this question we must refer to Article 23 of Law 35/2006, which clarifies:
Article 23 Deductible expenses and reductions
1. For the determination of net income shall be deducted from the gross income the following expenses:
a) All expenses necessary to obtain yields. expenses necessary to obtain yields the following shall be considered, among others:
- 1 The interests of foreign capital invested in the acquisition or improvement of the property, right or right to use and enjoy as appropriate yields, and other financing costs, and the costs of repair and maintenance of the property. The total amount to be deducted for these expenses may not exceed, for each asset or right, the amount of the gross income obtained. The excess may be deducted in the
- 2 No state taxes and surcharges and fees and state surcharges, whatever their denomination, provided that impinge on the computed returns or good or right producer of those and do not have punitive nature.
- 3.º Uncollectible balances under the conditions established by regulation.
- 4.º The amounts accrued by third parties as a result of personal services
- b) The amounts for amortization of property and other assets assigned to it, provided that they meet their effective depreciation, under the conditions prescribed by regulation. In the case of real estate, it is understood that the amortization meets the requirement of effectiveness should not exceed the result of applying the 3 percent of the greater of the following values: the cost of satisfied acquisition or assessed value, excluding the land value.
In the case of income derived from the ownership of a right or power to use or enjoyment, will also be deductible for depreciation, with the limit of the gross income, the proportion of the value of satisfied acquisition, under the conditions statutorily determine
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HERRERA ECONOMISTS AND LAWYERS