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
For group one (for example computers, office equipment)
- Instead of 3 years, it is now possible to write off 100% in only 12 months:
- 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,
- 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.