Did you know that you can interrupt the tax depreciation?

The taxpayer may decide to interrupt the application of tax depreciation of tangible assets for one entire tax period or several entire tax periods. In the following year (tax period), the taxpayer continues the depreciation as if it had not been interrupted. The total depreciation period is thus extended by the period of suspension of depreciation.

At the same time, it is important to note that the interruption of depreciation can only be used for tangible assets, i.e. that it is not possible to interrupt the depreciation of intangible assets. 

The interruption applies to the entire tax period, and it is not possible to interrupt depreciation only for specific months of the year. 

The possibility to interrupt depreciation arises already in the first tax period in which the asset is put into use. It is possible to interrupt depreciation for a given asset and then renew it several times during its depreciation period.

The taxpayer can choose for which tangible assets the tax depreciation is suspended, or he can decide to suspend the depreciation of all tangible assets. In this way, the taxpayer can optimize his tax base and e.g. prevent the possible expiration of the tax loss deduction (arising in the previous tax periods).

However, please note that there are cases when the taxpayer cannot interrupt the tax depreciation. This includes micro-taxpayers who apply advantageous tax depreciation regime or taxpayers that are recipients of investment aid or incentives. The interruption cannot be applied during tax audit and tax assessment proceedings.