The initial value may only exceptionally be determined by means of a valuation
In order to make an entry in the register of fixed assets and to determine the amount of depreciation, it is necessary to specify the initial value of fixed assets - but what to do if the taxpayer has a problem with it?
Initial Value - Determining
The method of determining the initial value of fixed assets accepted for the register of fixed assets is specified in the Personal Income Tax Act in Art. 22g.
The article states that the initial value of fixed assets is generally considered to be:
in the event of a purchase for consideration - the purchase price, i.e. the amount due to the vendor, increased by the costs related to the purchase accrued until the date of transfer of the fixed asset or intangible value for use, less tax on goods and services. In the case of import, the purchase price includes customs duty and excise duty on the import of assets;
in the case of own production - production cost, i.e. the value, at the purchase price, of fixed assets used to produce: tangible assets and third party services used, costs of remuneration for work together with derivatives and other costs that can be included in the value of manufactured fixed assets. The cost of production does not include the value of the taxpayer's own labor, his spouse and minor children, overheads, selling costs and other operating costs and financial operations costs, in particular interest on loans (credits) and commissions, excluding interest and commissions charged to the day of putting the fixed asset into use;
in the case of acquisition by inheritance, donation or otherwise free of charge - the market value on the day of acquisition, unless the donation agreement or the free transfer agreement specifies this value at a lower amount.
The purchase price and the production cost are adjusted for exchange rate differences, calculated until the date of transferring a fixed asset or an intangible and legal value to use.
Additionally, in the case of fixed assets that require assembly, the initial value is increased by the expenses incurred for their assembly.
So how to proceed if the taxpayer does not have the knowledge or documents to determine the initial value of fixed assets?
Initial value - expert appraisal
In a situation where the taxpayer is unable to determine the cost of manufacturing fixed assets, their initial value may be determined in the amount specified by an expert appointed by the taxpayer.
It should be noted that such a situation may take place only in exceptional situations, e.g. if the taxpayer wants to enter a fixed asset purchased before starting a business and was not obliged to collect purchase invoices for the creation of a fixed asset in the fixed assets register.
Initial value - taxpayer's valuation
The Personal Income Tax Act allows for the possibility for the taxpayer to perform a valuation of fixed assets and on its basis determine the initial value from which the amount of depreciation charges will be calculated.
Art. 22g (8) UDPOF
If it is not possible to determine the purchase price of fixed assets or their parts purchased by taxpayers before the date of registration (...), the initial value of these assets is assumed in the amount resulting from the valuation made by the taxpayer, taking into account the market prices of fixed assets of the same type in December preceding the year in which the records were established or the list was drawn up, as well as the state and degree of their wear.
As for the market prices mentioned in the article of the Act from December of the year preceding the year in which a given fixed asset was entered into the fixed assets register - this value may be confirmed, for example, by printouts from archival auctions or internet offers.
In addition, taxpayers have the option of determining the initial value of buildings and flats rented, leased or used by the taxpayer for business purposes, assuming in each tax year the value of the product of square meters of the usable area of the building or premises used by the taxpayer and the amount PLN 988 (the usable area is the area used for real estate tax purposes).