Depreciation write-offs on the initial value of fixed assets purchased for the production of goods related to counteracting COVID-19

Abstract

Due to the pandemic caused by the SARS-CoV-2 virus, taxpayers were allowed to make one-off depreciation write-offs from the initial value of fixed assets that were acquired for the production of goods related to counteracting COVID-19. The aim of this study is to present this solution in theoretical and practical terms in order to evaluate it.

In the author’s opinion, the possibility of making a one-off depreciation is a favorable tax preference. At the same time, the tax authorities adopt a liberal stance on the possibility of using this solution. Nevertheless, taking into account the number of issued individual interpretations, it should be stated that few entities in practice decide to make a one-off depreciation.