In addition to straight-line or declining balance depreciation, special 40% depreciation can be claimed for movable fixed assets (before 1.1.2024: 20%). The 40% special depreciation, which can be claimed in a preferential period of a maximum of 5 years, is not permitted under commercial law. If the entrepreneur has to prepare a commercial balance sheet, he may not show the special depreciation in the commercial balance sheet. The following must then be shown in the commercial balance sheet Deferred tax liabilities be reported.
The special depreciation allowance is not reduced pro rata temporis in the year of acquisition, so that the full amount of the special depreciation allowance can be deducted as a business expense even if the acquisition is made in December. Only businesses with a profit limit of no more than €200,000 in the year prior to claiming are eligible. When determining the profit limit of € 200,000, investment deductions are not taken into account, nor are any add-back amounts. The profit limit of € 200,000, which applies to sole proprietorships and corporations, is also decisive for partnerships. The amounts resulting from the company balance sheet and from supplementary and special balance sheets are decisive for determining the profit limit of the partnership.
Special depreciation may only be claimed for fixed assets. It can only be claimed for
- new and used movable fixed assets,
- which are used exclusively or almost exclusively (at least 90%) for business purposes in the year of acquisition or production and in the following year.
Only fixed assets are eligible. However, it is not detrimental if an asset is first acquired as a current asset and then transferred to fixed assets.
Only movable assets are eligible. These include items (objects), operating equipment, fictitious components and animals. This means that the 401TP3 special depreciation allowance for the acquisition of land and buildings does not apply, nor does it apply to fixtures and fittings used in the building. Intangible assets, such as software, copyrights, etc., are also not eligible.
Operating equipment is always treated as an independent movable asset, even if it is permanently attached to the building. The decisive factor is that they are assets that are not in a uniform functional relationship with the building, such as passenger elevators that serve the use of the building. Goods elevators, on the other hand, are operating equipment because their operational use is the main focus.
Fictitious components generally arise when assets are installed in a building for a temporary purpose. This is the case, for example, if the installation
- has a shorter useful life than the term of the rental and lease agreement or
- can be removed and reused after termination of the tenancy and lease.
The limit value for private use is 10%. The special depreciation can only be claimed if the asset
- in the year of acquisition or production and in the following financial year
- is rented out or
- in a domestic permanent establishment is used (almost) exclusively for business purposes.
An asset is used almost exclusively for business purposes if the proportion of private use does not exceed 10%. For exclusive business use, therefore, the first two years is decisive. The (almost) exclusive business use must (in contrast to the investment deduction amount) necessarily exist in each of the first two years, i.e.
- in the year of acquisition or production and
- in the following financial year.
The asset may be rented out in the year of acquisition or manufacture and in the following financial year.