Relief through immediate depreciation of digital assets

Laptop which stands for immediate depreciation of digital assets

The new tax rule applies retroactively as of 1 January 2021. In future, acquisitions in the area of digital assets can be fully taken into account for tax purposes in the year of acquisition. Previously, such acquisitions had to be depreciated over the normal useful life of three years if the limit for low-value assets (GwG) of € 800 net was exceeded.

In any case, companies should be able to write off assets such as computer hardware and software for data input and data processing at 100% in the year of acquisition. It is not yet known conclusively which digital assets are to be affected by this immediate depreciation regulation and to what extent complex hardware such as

  • network infrastructure,
  • servers,
  • data centres,
  • firewalls

are included.

Immediate depreciation 2021: Investing in new technology pays off

Can an employee also claim depreciation for low-value assets?

Not only companies but all employees who have to work in a home office will benefit from the new tax rule: "This is good news also for all those who are currently working in a home office," said Federal Finance Minister Olaf Scholz (SPD) about the decision of the Conference of Minister Presidents. He puts the financial stimulus at 2.3 billion euros per year.

For the digital economy, the immediate write-off in 2021 could be a driving force. "This is an important measure that both relieves the burden on professionals and can boost sales of hardware and software," says Thomas Kriesel, Head of Tax, Corporate Law and Financing at the digital association Bitkom. The claiming of income-related expenses or business expenses will thus be simplified, as the expenses no longer have to be reported in the tax return spread over several years, analogous to the useful life. Immediate depreciation will thus bring tax relief to all those who need hardware and software for their professional or commercial activities.