Write-off, Depreciation of Goods, standard rules and special rules

Standard Depreciation of Goods (2011)

In Czech Republic depreciation of goods, divided in 6 'write-off' groups, can vary from 36 to 600 months:
  • group 1, 36 months: IT equipment, tools, "machinery"
  • group 2, 54 months: cars, office equipment, "machinery"
  • group 3, 114 months: "heavy machinery"
  • group 4, 240 months: pipelines etc.
  • group 5, 360 months: buildings
  • group 6, 600 months: commercial and administrative buildings, department stores, hotels

As a rule of thumb, anything for the company costing less than 40.000 CZK can be written off in one year.

Special Write-Off - Mimorádné Odpisy for purchases before 31.06.2010

Due to the economical crisis, there have been exceptions to the standard rules in 2010, allowing a much faster write-off for a limited amount of time (no longer possible in 2011). This only concerned the first two groups mentioned above.

For group one (for example computers, office equipment)
  • Instead of 3 years, it is now possible to write off 100% in only 12 months:
For group two (for example cars)
  • Instead of 5 years, it is now possible to write off 100% in only 24 months:
  • during the first 12 months, 60% of the value,
  • during the last 12 months, 40% of the value,
There are however a couple of conditions:
  • the goods must be bought between 1.1.2009 and 30.6.2010
  • you must be the first owner, so this doesn't work for second-hand items.
Important: for goods bought after 31.06.2010, this special faster write-off can not be applied anymore.