Depreciation of a new passenger car - worth knowing


An entrepreneur who has purchased a brand new passenger car for the company's needs has the option of making depreciation write-offs only in one type of depreciation. Check what is the depreciation of a new passenger car!

Passenger car depreciation

A new passenger car can only be depreciated using straight-line depreciation.

Depreciation using the straight-line method consists in making write-offs from the initial value of the car entered into the fixed assets register in equal installments every month or in equal installments every quarter or once at the end of the tax year. The sum of the depreciation write-offs of the fixed asset made in the first tax year may not exceed the value of these write-offs for the period from entering it into the records until the end of that tax year.

Depreciation is made from the first month following the month in which the car was entered into the fixed assets register, until the end of the month in which the sum of depreciation is equalized with its initial value or in which it was put into liquidation.

For passenger cars depreciated on a linear basis, a 20% annual rate can be applied.

Tax costs are only those write-offs made on the depreciation base amounting to the equivalent of EUR 20,000.