Every business that owns expensive equipment, vehicles, machinery, or buildings must account for depreciation. It is not just a bookkeeping obligation — depreciation write-offs are a genuine tax optimisation tool that reduces the taxable base and therefore lowers income tax. How does it work in practice?
What Is a Fixed Asset?
A fixed asset (środek trwały) is a component of business property that:
- is owned or co-owned by the taxpayer,
- is complete and fit for use,
- is intended for use for a period longer than 1 year,
- has a net value exceeding 10,000 PLN (a limit introduced in 2018).
Items below 10,000 PLN may be expensed immediately at the time of purchase.
Depreciation Methods
1. Straight-Line Method
The simplest and most widely used method. You write off the same amount each year, based on the rate listed in the official Depreciation Rate Schedule (an annex to the CIT/PIT Act).
Formula: Annual write-off = Initial value × Depreciation rate
Example: Laptop worth 15,000 PLN, rate 30% → annual write-off = 15,000 × 0.30 = 4,500 PLN/year. Fully depreciated in ~3.3 years.
2. Declining-Balance Method
Primarily used for machinery and equipment (not buildings). The straight-line rate is multiplied by a coefficient of 2.0, but the depreciable base decreases each year by prior write-offs. When the declining-balance annual write-off falls below the straight-line amount, you switch to the straight-line method.
Declining-balance depreciation is tax-advantageous in the early years of an asset's life.
Common Depreciation Rates in 2026
Selected rates from the official Schedule:
- Computers and laptops: 30% (straight-line ~3.3 years)
- Passenger cars: 20% (5 years)
- Trucks: 20%
- Machinery and equipment: 10–18%
- Non-residential buildings: 2.5% (40 years)
- Residential buildings: 1.5% (~67 years)
One-Time Depreciation for Small Businesses
New entrepreneurs and small taxpayers can use one-time (bonus) depreciation up to a total value of 50,000 EUR per year (converted to PLN at the NBP rate). This is a form of de minimis state aid that allows the full cost of a fixed asset to be immediately expensed.
Depreciation Calculator
There is no need to manually create a multi-year write-off table. Use the depreciation calculator on Liczbnik — enter the asset value, rate, and method, and the tool generates a complete depreciation schedule broken down by year, including the net book value after each period.
Summary
Depreciation is not bureaucratic hassle — it is a real tax benefit. Correctly calculated write-offs reduce income tax for many years. The key is choosing the right rate and method: straight-line works for most assets, while declining-balance is more advantageous for new machinery investments.