Cost correction until the end of 2015 - depreciation of fixed assets

2013-2015 cost adjustment

The 3rd deregulation act enacted on November 16, 2012 introduced changes, namely art. 24d regarding the adjustment of tax deductible costs in the case of unpaid invoices. This article also deals with the acquisition or production of fixed assets and intangible assets.

The regulations entered into force on January 1, 2013 and required to exclude from tax deductible costs depreciation write-offs in the part that corresponded to unpaid payments, which made up the initial value.

The deadlines were set in the same way as for other costs. Corrections of the accrued depreciation had to be made in the month in which:

• 30 days from the date of payment specified on the invoice has expired (applies to payment terms less than 60 days);

• the deadline of 90 days from including them as tax deductible costs has expired (applies to payment terms over 60 days).

If this deadline expired in subsequent months and related to the entire liability, the taxpayer had the right to include depreciation write-offs in the costs, provided that the liability was settled within the indicated deadlines.

The cost adjustment also applied to fixed assets under construction, if some invoices were not paid at the time of commissioning, and 30 days have already passed from the payment date. Depreciation write-offs in the part constituting unpaid invoices should not constitute tax deductible costs. Also, when depreciation has already commenced and the deadline for making a correction has passed, the entrepreneur was required to make an adjustment to depreciation write-offs that were shown in the KPiR as tax deductible costs. These provisions were in force until the end of 2015.

Cost adjustment transitional provisions

As of January 2016, the provisions requiring taxpayers to make adjustments to costs due to unpaid payments will no longer apply.

Pursuant to the transitional provisions, taxpayers who, on the basis of the current rules, have reduced tax deductible costs or increased revenues, will be able to increase their tax deductible costs after paying their liabilities to the contractor. However, this rule will only apply from January 2016.

Example 1.

The trader bought the trading goods in November 2015. On November 16, he received the ordered goods and an invoice. Payment is due on January 8, 2016 (84 days). The entrepreneur paid the invoice on January 30, 2016. The cost correction takes place in January 2016. Due to the new regulations in force from January, the entrepreneur does not write off the invoice from company costs.

Example 2.

The entrepreneur bought office supplies in December. The date of issue and delivery is December 15, 2015, the payment deadline is December 22, 2015. The entrepreneur settled the invoice on February 15, 2016. The deadline for the cost adjustment is January 2016. New regulations have been in force since January, therefore the entrepreneur does not write off the invoice from company costs.