Czech Republic: Proposed extension of extraordinary tax depreciation regime to 2022-2023 (COVID-19)

Proposal to extend the regime of extraordinary, accelerated tax depreciation

Proposal to extend the regime of extraordinary, accelerated tax depreciation

The Ministry of Finance has proposed extending the regime of extraordinary, accelerated tax depreciation for assets classified in the first and second depreciation group, acquired in 2022-2023, for which the taxpayer is the first depreciator.

This regime was already in place for assets acquired in 2020-2021 to mitigate the impact of the coronavirus (COVID-19) pandemic on businesses. In 2022 and 2023, it will also be possible to depreciate assets classified in the first depreciation group without interruption over 12 months instead of the standard three years, and assets classified in the second depreciation group without interruption over 24 months instead of the standard five years. In the first 12 months, taxpayers will be able to claim depreciation of up to 60% of the input cost.

Read a June 2022 report prepared by the KPMG member firm in the Czech Republic

 

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