Possibility of introducing back corrections of depreciation rates – judgment given by Supreme Administrative Court

Taxpayers have the possibility of back depreciation of fixed assets – this is what the Supreme Administrative Court ruled on 3 February 2022 in the judgment of reference court file number II FSK 1413/19.

Such a change can be introduced at any time, the only time limit is the period of prescription for a tax liability. Of course the level of the corrected write-offs cannot exceed the maximum depreciation rates contained in the Annual List of Depreciation Rates constituting an annex to the CIT Act.

The judgment confirms that the entrepreneurs who have incurred losses are allowed to pass them on to the following tax years.