The declining balance method of depreciation is back!

Movable fixed assets such as machinery, vehicles or furniture can now be depreciated at up to 30 % per year - but at a maximum of three times the straight-line depreciation rate!

This applies to investments that you make between 01.07.2025 and 31.12.2027.

The last time such high declining balance depreciation was possible was in 2006 and 2007.

One example:

An entrepreneur buys a new machine for EUR 100,000.00 (excluding VAT) with a normal useful life of 8 years. The straight-line depreciation would be 12.5 %, i.e. 12,500.00 euros per year.

If the entrepreneur uses the new declining balance method of depreciation, he can instead reduce his taxable profit as follows:

1st year: 30 % of 100,000.00 euros = 30,000.00 euros
2nd year: 30 % of 70,000.00 euros (residual book value) = 21,000.00 euros
3rd year: 30 % of 49,000.00 euros (residual book value) = 14,700.00 euros 
etc.

That is a considerable difference!

👉 If you would like to invest now to benefit from the new depreciation booster - get in touch with us:
www.wsb-berater.de/kontakt

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