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Rise of Amount for Depreciation of Low Value Assets for 2018

In German tax law, the bookkeeping taxpayer has two alternative options for the depreciation of low value assets.

Main practice is the immediate depreciation of low value assets having a value up until or equal to 410 EUR until 31.12.2017. The limit is raised to 800 EUR from 01.01.2018. These amounts are net value, so the amount including VAT is 487,90 EUR respectively 952,00 EUR.

Assets with costs of acquisition between EUR 150 and EUR 1.000 can be pooled in a collective item, following the alternative option. This item is subject to straight-lined depreciation over five years. Additional assets are added to the item, while low value asset disposals are disregarded for accounting purposes. The lower limit for recognition of a collective item is raised to 250 EUR from 01.01.2018.

As a result some taxpayer may find it interesting, to postpone investments of up to 800 EUR to 2018. The above mentioned pooling method might lose its attraction in 2018.





Juliane Lange

Juliane Lange

Tax Consultant, Lawyer, HLB Dr. Stückmann und Partner


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