Depreciation of fixed assets in a Polish JDG (2026) — rates, limits, and when it pays off

Depreciation rates are predetermined in the depreciation rate schedule (an annex to the PIT Act). The most common rates:

Cars

• Passenger car: 20% per year (value limit 150,000 zł)
• Commercial vehicle: 20% per year (no value limit)
• Motorcycle: 20% per year (limit 150,000 zł)

Passenger car limit: you can depreciate a maximum of 150,000 zł of the car's value. If the car costs 200,000 zł — you deduct costs only from 150,000 zł.

Electronic equipment

• Computer, laptop: 30% per year
• Smartphone: 25% per year
• Servers, networking equipment: 25% per year
• Software: 30% per year (if above 10,000 zł)

Machinery and equipment

• General machinery: 10% per year
• Specialised machinery: 15–20% per year (depends on KŚT classification)
• Office furniture: 10% per year
• Tools: 20% per year

Buildings and premises

• Residential buildings: 1.5% per year
• Non-residential buildings: 2.5% per year
• Office premises: 2.5% per year

Types of depreciation

1. Straight-line (basic)

Evenly spread over the years. If a laptop costs 12,000 zł and the rate is 30%, you deduct 3,600 zł per year over ~3.3 years.

Advantages:

• Simple to calculate
• Stable, predictable cost
• Available for all forms of taxation

2. Declining-balance (accelerated)

A higher rate in the early years, lower in later ones. Available only on the tax scale and flat tax — not on lump-sum tax (ryczałt).

Declining-balance rate = straight-line rate × 1.2. If the straight-line rate is 20%, the declining-balance rate is 24% in the early years.

Advantages:

• You deduct costs faster in the early years
• Good for equipment that loses value quickly

3. One-time (accelerated)

100% of the cost in the year of purchase. Available for small taxpayers and new entrepreneurs.

Conditions:

• Small taxpayer (revenue below 2 million EUR per year)
• Fixed asset from KŚT groups 3–6 and 8
• Limit: 100,000 zł per year (combined for all assets)

Advantages:

• You deduct the entire cost at once
• Good at the start of a business, when costs are high

Depreciation on lump-sum tax (ryczałt) — a warning

On lump-sum tax (ryczałt) you cannot depreciate fixed assets. Lump-sum tax is a tax on revenue without costs — you deduct neither purchases nor depreciation.

If you plan major investments (a car, equipment) — lump-sum tax may cost you more than the tax scale or flat tax.

Exception: On lump-sum tax you can depreciate fixed assets acquired before switching to lump-sum. If you bought a car before the switch, you can continue depreciating the remaining value.

Depreciation and VAT

Depreciation concerns income tax (PIT). VAT is settled separately:

• Active VAT taxpayer: you deduct 100% of VAT on the purchase (if it serves the business)
• VAT-exempt: VAT is a cost (added to the initial value)

For passenger cars there is an additional VAT limit — 50% deduction, unless you use the car only for business purposes (then 100% with a monthly mileage log).

How to calculate depreciation — examples

Example 1: Laptop 12,000 zł

• Value: 12,000 zł net
• Rate: 30% (KŚT 5.2)
• Straight-line depreciation: 12,000 × 30% = 3,600 zł/year (300 zł/month)
• Depreciation period: ~3.3 years

Example 2: Passenger car 80,000 zł

• Value: 80,000 zł net (below the 150,000 zł limit)
• Rate: 20%
• Straight-line depreciation: 80,000 × 20% = 16,000 zł/year (1,333 zł/month)
• Depreciation period: 5 years

Example 3: Passenger car 200,000 zł

• Value: 200,000 zł net
• Limit: 150,000 zł
• Rate: 20%
• Depreciation: 150,000 × 20% = 30,000 zł/year (2,500 zł/month)
• You depreciate only 75% of the car's value

One-time depreciation — is it worth it?

One-time depreciation lets you deduct the full cost in the year of purchase. This is good for:

• New entrepreneurs — a quick tax reduction in the first year
• Small taxpayers — revenue below 2 million EUR
• Equipment that loses value fast — computers, phones

Limit: 100,000 zł per year for all fixed assets combined.

Pitfalls and most common mistakes

1. Depreciation on lump-sum tax

On lump-sum tax you cannot depreciate new fixed assets. If you buy a car after switching to lump-sum — you will not deduct it as a cost.

2. Exceeding the 150,000 zł limit for cars

Passenger cars have a 150,000 zł limit. If you buy a car for 250,000 zł — you deduct costs only from 150,000 zł.

3. No fixed-asset register

You must maintain a fixed-asset register — purchase dates, values, rates, depreciation to date. Without it you cannot settle with the Tax Office.

4. Depreciating private assets

You cannot depreciate your personal equipment. If you use a personal laptop for business — that is not a cost.

5. Forgetting VAT limits for cars

For passenger cars you deduct only 50% VAT, unless you use the car only for business purposes (monthly mileage log).

FAQ

Can I depreciate a 5,000 zł computer?

Not as a fixed asset — the value is below 10,000 zł net. But you can expense it in one go (no depreciation required).

Can I depreciate assets on lump-sum tax?

Not new fixed assets. Only those acquired before switching to lump-sum.

Is one-time depreciation available to everyone?

No. Only for small taxpayers (revenue below 2 million EUR) and assets from KŚT groups 3–6 and 8.

Do I have to start depreciating a car from the first month?

No. You start depreciation from the month following the month you enter the asset in the register.

Can I sell a car during depreciation?

Yes. But you must adjust the costs — the remaining un-depreciated value may become a one-time cost (on sale).

Need help with depreciation?

I handle sole proprietorship (JDG) accounting with full fixed-asset support — registers, depreciation, one-time depreciation. From 49 zł + VAT per month.

Email me at [email protected] or visit oxyok.com/pl.

Note: Rates and limits based on the PIT Act (Chapter 4) and the depreciation rate schedule (annex). Passenger car value limit: 150,000 zł. One-time depreciation limit: 100,000 zł/year. Consult an accountant before making decisions.