Note: you can benefit from the following changes. However, they only apply to assets acquired or produced from 2018 onwards:
The legislator has raised the threshold for low-value assets (geringwertige Wirtschaftsgüter, GWG) from EUR 410 to EUR 800. As a result, taxpayers (whether entrepreneurs, freelancers or employees) can deduct assets acquired for business purposes up to a net amount of EUR 800 in full as business expenses or income-related expenses in the year of acquisition or production.
The legislative procedure also amended the so-called collective item or pool rule, which, however, applies only to entrepreneurs. Currently, assets with acquisition or production costs ranging from EUR 150 to EUR 1,000 can be placed in a collective item and depreciated on a flat-rate basis over a useful life of five years. In future, the value threshold will be raised from EUR 150 net to EUR 250 net.
In addition, the value threshold for the special record-keeping obligation for assets has likewise been raised from EUR 150 to EUR 250. Accordingly, entrepreneurs will in future only be required to record assets with acquisition costs exceeding EUR 250 in a special register, stating the acquisition date, provided the information does not already result from the bookkeeping. This rule only applies to assets with acquisition costs between EUR 250 and EUR 800; it does not apply to the collective item rule.
Under R 5.5 EStR, it has so far also been permissible to write off standard computer programs with acquisition costs of up to EUR 410 directly. This threshold is aligned with the threshold for the valuation allowance for low-value assets under § 6 (2) EStG. According to a recent statement by the Federal Government, this amount will likewise be raised from EUR 410 to EUR 800; this is to be expected with the next revision of the tax guidelines.
The following table provides an overview of the new rules:
Value
EUR 0 – EUR 250
Over EUR 250 – EUR 800
Over EUR 800 – EUR 1,000
Regular depreciation over useful life
yes
yes
yes
Depreciation as GWG
yes
yes, special record-keeping obligation may apply
no
Collective item depreciation
no
yes, no special record-keeping obligation
yes, no special record-keeping obligation
Frequently asked questions
Frequently asked questions
What is the low-value asset (GWG) threshold from 2018 onwards?
As of 2018, the threshold for low-value assets (geringwertige Wirtschaftsgüter, GWG) was raised from EUR 410 to EUR 800 net. Taxpayers — whether entrepreneurs, freelancers, or employees — may deduct business-related assets up to this net amount in full as business expenses or income-related expenses in the year of acquisition or production. The new rule applies to assets acquired or produced from 2018 onwards.
What value thresholds apply from 2018 onward for the collective item (pool) rule?
The collective item rule applies only to business owners. From 2018, assets with acquisition or production costs between EUR 250 and EUR 1,000 net can be entered into a collective item and depreciated on a flat-rate basis over five years. The lower threshold was thus raised from EUR 150 to EUR 250 net.
From what value does a special recording obligation apply to low-value assets (GWG)?
The threshold for the special recording obligation was raised from EUR 150 to EUR 250 net. Accordingly, businesses only need to record assets with acquisition costs above EUR 250 up to EUR 800, including the acquisition date, in a separate register, unless the information is already available from the accounting records. This recording obligation does not apply to the pooled-item (Sammelposten) rule.
Up to what amount can standard software be written off immediately from 2018 onwards?
Under R 5.5 EStR, an immediate write-off of standard computer programs was previously permitted up to EUR 410. This threshold is aligned with the low-value asset (GWG) limit under § 6 Abs. 2 EStG and, according to the Federal Government, will likewise be raised to EUR 800. The adjustment is expected with the next revision of the tax guidelines.
How are assets between EUR 800 and EUR 1,000 treated from 2018 onwards?
Assets with acquisition costs above EUR 800 and up to EUR 1,000 net can no longer be immediately written off as low-value assets (GWG). They can, however, either be depreciated regularly over their standard useful life or, for businesses, allocated to a pooled item (Sammelposten) and depreciated on a flat-rate basis over five years. No special recording obligation applies within this value range.