Depreciation is often treated as a purely technical accounting matter, but it has a direct impact on a company’s tax base.
Companies can:
- choose depreciation rates,
- determine methods of calculation,
- influence the timing of cost recognition.
Mistakes occur when:
- inappropriate rates are applied,
- assets are incorrectly classified,
- accounting treatment is not aligned with tax rules.
This may result in:
- higher or lower tax liabilities than expected,
- later corrections,
- increased audit risk.
➡️ Important: Depreciation is not just an accounting decision — it is also a tax strategy.
CTA:
👉 We can help optimize your depreciation policy from a tax perspective.