Temporary Introduction of Declining-Balance Depreciation

As a rule, assets are depreciated on a straight-line basis over their useful life with equal annual amounts. For movable assets, declining-balance depreciation is now to become available again. It is to amount to up to 25% of the acquisition cost, but no more than 2.5 times the straight-line depreciation rate. The depreciation amounts are relatively high at the outset and decrease in later years. This allows depreciation potential to be realised for tax purposes at an earlier stage. The new rule is to apply to movable assets acquired or produced after 30 September 2023 and before 1 January 2025.