One-time depreciation of a fixed asset purchased with a subsidy


Entrepreneurs using external sources of financing, which are often subsidies, must remember about the consequences that await them in the future. First of all, they should pay attention to the subsidy contract and the conditions that are specified in it. This is because subsidies are often awarded for a specific purpose, which means that not every expenditure can be financed with it, despite the fact that it relates directly to the company's operations.There are also tax consequences associated with the subsidy ... Can one-time depreciation be used when the entrepreneur has financed the purchase of a fixed asset with a subsidy?

You bought a fixed asset with a subsidy - depreciation will not be a cost

As a rule, the received subsidy is an entrepreneur's income that is not subject to taxation. Fixed assets acquired in full thanks to the received subsidy will not be a tax expense. Items purchased for business purposes, the expected useful life of which is more than a year, usable with a value of more than PLN 10,000, however, are required to be entered in the company's Fixed Assets Register. Under the Act, these items should be amortized, which means that there should be a plan that reflects their gradual wear and tear. This also applies to fixed assets purchased with subsidies. Therefore, the depreciation schedule will include monthly depreciation charges, which are generally a cost, but not when the fixed asset has been financed with a subsidy.

Therefore, a fixed asset purchased from a subsidy should be entered into the company's Fixed Assets Register, depreciation write-offs should be calculated, i.e. a depreciation schedule should be drawn up, but not taken into account for tax purposes. Therefore, they should not be entered in the tax revenue and expense ledger.

You used a subsidy - check if you can use one-time amortization

The consequences of using a subsidy do not only apply to those things purchased with a subsidy. They can also have a broader aspect and affect the future of the business. Especially when the entrepreneur plans to use other sources of aid in the future, such as de minimis aid (for small taxpayers and entrepreneurs starting a business). In the most popular form, it is used by entrepreneurs to make one-off depreciation write-offs for selected types of fixed assets with a value exceeding PLN 10,000.

The limit limiting the use of one-time de minimis depreciation is the statutory limit of EUR 50,000, which cannot be exceeded in a given tax year by the sum of one-off depreciation write-offs of fixed assets with a value above PLN 10,000. However, this is not the only limit limiting the use of aid.

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The second limit that applies when using de minimis aid is the limit of EUR 200,000, which cannot exceed the sum of the granted support. The limit is for a period of three years. For companies operating in the road transport sector, the limit is lower and amounts to EUR 100,000. Subsidies received also count towards general de minimis support. Therefore, if the entrepreneur has used a subsidy or other form of de minimis support in the last three years and has exceeded the limit, it may not be able to use a one-off de minimis depreciation. It should also be remembered here that the entrepreneur himself is responsible for controlling the limit amount. In the event of irregularities, he will be charged with the consequences of not complying with the aid limit specified in the regulations.