Every entrepreneur uses at his work things  which over the course of  time and their use lose their value. These things are referred to as fixed assets and their value is determined by an accounting  mechanism called depreciation. Depreciation is the value of particular asset written off in costs in each accounting period, usually one year. This involves systematic write-downs of a part of the value of things connected  with its consumption. An additional concept requiring presentation is remission of an asset, which means a cumulated depreciation value, adjusting the value of the fixed asset shown in the balance sheet as their gross value (initial value) to the net value.

The provisions governing the depreciation issue are to be found in the Personal Income Tax Act, the Corporate Income Tax Act and the Act on Accounting. At the same time, assets are classified in the Regulation of the Council of Ministers.
The term fixed assets, in accordance with Article 3(1) (15) of the Accounting Act, is understood by legislator as fixed tangible assets with the expected useful economic lives longer than one year.  The four main groups are:

  • real estate;
  • machinery, equipment, means of transport and other goods;
  • improvements in foreign fixed assets,
  • livestock.

Taking into account fixed asset, it is important that thing used by an entrepreneur had value of more than PLN 3500, and the minimum period of its utility is one year. In 2015 the maximum amount of one-off depreciation write-down was PLN 209 000.

Important change is also (with effect from 1 January 2015) a regulation connected with establishing the initial value of the fixed asset.  This concerns taxable persons who acquired a component of fixed asset by the execution of agreement benefits in place of performance (datio in solutum) or foreign taxpayers who carry out their activities by foreign establishment in the territory of the Republic of Poland, by European companies and European Cooperatives.  This means that, in the case of the satisfaction of claims by the debtor in a form other than arranged, the value of the provision conferred is depreciated. If the debt was PLN 10 000 and we were told that the car is worth PLN 12 000, the amount of depreciation will be PLN 12 000

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