On September 15th, 2023 an amendment to the Polish Commercial
What is cost segregation?
Cost segregation is a detailed separation of fixed assets on the basis of tax regulations and Classification of Fixed Assets and determination of initial values of fixed assets including indirect costs.
Why is it worth it?
Increasing the basis for the application of higher depreciation rates for income tax purposes.
|Increase in monthly depreciation write-offs by up to 2.5 times compared to an investment where only the building and basic structures (car park, fencing) were separated.|
|Minimum income tax on commercial property.||Lower tax base due to lower value of the building itself.|
|Preparation of the real estate for sale.||Transparent fixed asset structure and better due diligence results from the buyer.|
|Inventory of assets.||Review of assets and ability to professionally label fixed assets.|
|Property tax review.||Possible reduction of the tax base for structures.|
|Fixed asset (group)||Initial value||Depreciation rate||Depreciation||Minimum tax|
|Building||100 m||66 m||2,5%||2,5%||2,5 m||1,65 m||378 k||235 k|
|Ventilation and air conditioning||10 m||10,0%||1 m|
|Telecommunication systems||9 m||10,0%||0,9 m|
|Electrical Switchgear||7 m||10,0%||0,7 m|
|Power generators||2 m||14,0%||0,28 m|
|External buildings||6 m||4,5%||0,27 m|
|Depreciation write-offs per year||2,5 m||4,8 m|
On September 1, 2023 the Regulation of the Minister of
The methods used to verify the transfer price are indicated