That's the way I understand it. Hope it helps. Good luck, Katherine Matles!

check this page and good luck
http://www.siecan.org/ingles/informacion/guia_empresas/Cap6b...

or freedom of amortization

I think freedom in Spanish just would be said in English as The Option to depreciate....

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Note added at 2003-03-30 19:50:32 (GMT)
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Katherine, you may be right about the time issue but your text doesn\'t mention that. It\'s talking about being able to depreciate certain assets...whereas before they could not.

regula la libertad de amortización para inversiones generadoras de empleo.

which regulates which assets may be depreciated in the event of employment-generating investments....

If you look at the end of page 8 beginning of page 9 of this reference you will see how this is translated and in context:

http://www.google.ie/search?q=cache:RtlUK4J7LqEC:www.eurolin...


"Tax benefitsAs has been commented on, the essential tax benefits for small and medium sized undertakings are the following:- ****freedom of depreciation for investments which create employment****- freedom of depreciation for investments with limited value
Page 9
9- depreciation of fixed assets new material- provision for insolvency of debtors- exemption for reinvestment- depreciation of assets forming the object of reinvestment- finance leasing contracts- special rate of tax. 30 / 35%.3.3.Tax on profits of non-resident companies without treaty for theavoidance of double taxation."

SEE alos this site:http://www.google.ie/search?q=cache:1GCaGoDpbkUC:www.siecan....

.4 Deduction for the creation of employment

4.4.1 Deduction of 1,000,000 pesetas for each worker contracted later than 9th June , 1996, on the total tax liability corresponding tot eh tax period which concludes after this date, provided always that the said worker is older than 45 years of age or is handicapped (Applicable only for the tax period concluding after 9th June 1996).

4.4.2 Deduction of 800,000 pesetas for each person/ year of increase of the average in the workforce of handicapped workers placed under an employment contract of indefinite duration with respect to the average workforce of handicapped workers the year before.

4.5 Fiscal incentives for companies of limited size:

The following *****fiscal incentives***** shall be applied provided always that the net amount of the turnover in the immediately previous taxable period is less than 250 million pesetas:

4.5.1 ******Freedom of depreciation: the elements of new tangible fixed assets, placed at the disposal of the tax payer, shall enjoy *******freedom of depreciation provided that, during the twenty four months subsequent to the date of commencement of the taxable period in which the acquired goods enter into operation, the total average ****workforce of the company is increased with regard to the average workforce of the previous twelve months and that the said increase is maintained for an additional period of a further twenty-four months.

4.5.2 Freedom of depreciation for investments of limited value: elements of new tangible fixed assets placed at the disposal of the tax payer whose unit value does not exceed 100,000 pesetas may be freely depreciated , up to a limit of 2,000,000 pesetas in the tax year.

4.5.3 Depreciation of the new tangible fixed assets and of the intangible fixed assets: these may be depreciated in accordance with the co-efficient which results from multiplying by 1.5 the maximum linear depreciation co-efficient set out in the officially approved depreciation tables.

A contribution for covering the risk deriving from possible insolvencies up to a limit of 1% of the existing debtors at the conclusion of the taxable period may be deducted.

4.5.4 Exemption for reinvestment: income obtained in the transfer for consideration of elements of tangible fixed assets attached to economic exploitation, will not be included in the taxable base, provided that the sum of the said income is not greater than fifty million pesetas and that the total amount received from the transfer is reinvested in other elements of tangible fixed assets.

4.5.5 Tax rate: that part of the taxable base between 0 and 15,000,000 pesetas of companies which pay tax at the general rate, shall pay at a rate of 30%, with the rest paying at a rate of 35%.