Ask a tax advisor on the topic of Profit and loss statement

Special depreciation for photovoltaic system

December 30, 2011 | 25,00 EUR | answered by Michael Herrmann

I bought a photovoltaic system for a net amount of 220,000 euros (excluding installation) in November 2009. Can I claim a special depreciation of 20% for the year 2010 (income statement)? In the provisional assessment, it is set at 5% linear (12,500 euros) in the depreciation. Should I file an objection?

Michael Herrmann

Dear inquirer,

First of all, thank you very much for your inquiry, which I would like to answer based on the information you provided and in the context of your involvement in an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

You can only claim special depreciation if the photovoltaic system is operated as part of a commercial enterprise. With a grid-connected photovoltaic system that generates income, you generally meet the necessary requirements for a commercial operation.

However, special depreciation is only granted upon request and in the requested amount. This must be communicated to the tax office in the profit determination and the asset schedule.

In the year of purchase of a movable depreciable asset or in one of the four subsequent years after the purchase, small and medium-sized enterprises can claim a total of 20% of the purchase price in a special depreciation. Within this period, the distribution of the 20% can be freely chosen.

If you have not already claimed special depreciation in 2009, there is nothing preventing you from doing so in 2010. You can file an objection within four weeks of receiving the tax assessment and retroactively apply for special depreciation.

I hope that this information has provided you with a sufficient overview of the situation within the scope of your involvement and this initial consultation.

Yours sincerely,

Michael Herrmann
Tax advisor
Diploma in Finance (FH)