Depreciation of fixed assets in a sole proprietorship (JDG) in Poland in 2026

What counts as a fixed asset

An asset can be a fixed asset if, among other things, it:

• is owned or co-owned by the taxpayer,
• was acquired or produced in-house,
• is complete and fit for use,
• has an expected useful life longer than one year,
• serves the business or is made available for use under an appropriate agreement.

A value above 10,000 zł is not a condition for treating an asset as a fixed asset.

What the 10,000 zł threshold means

If the initial value of an asset does not exceed 10,000 zł, the taxpayer may, as a rule:

• recognise the expense in costs all at once,
• enter the asset in the register and make a one-time write-off,
• or depreciate it under the general rules.

For a value above 10,000 zł, an asset that meets the definition of a fixed asset is, as a rule, accounted for through depreciation, unless a special one-time depreciation can be applied.

The initial value depends, among other things, on the price, costs related to the purchase, and any VAT the taxpayer cannot deduct.

Straight-line depreciation

Under the straight-line method, write-offs are calculated using the rate appropriate for the fixed assets classification (KŚT). Write-offs begin from the month following the month in which the asset is entered in the register.

Examples of commonly encountered rates:

• passenger cars — generally 20% per year,
• computer sets classified under KŚT 491 — generally 30% per year,
• some non-residential buildings — at the rate appropriate for their classification.

You should not choose a rate based only on the everyday name of an item. The correct KŚT classification and the actual facts are what matter.

Declining-balance method

The declining-balance method is available for certain machinery and equipment from KŚT groups 3–6 and 8 and for means of transport, excluding passenger cars.

The rate from the schedule can be increased by a factor no higher than 2.0. From the year in which the declining-balance write-off would be lower than the straight-line write-off, you switch to the straight-line method.

There is no general rule of "straight-line rate times 1.2".

One-time depreciation

De minimis aid

Small taxpayers and taxpayers starting a business may, once the conditions are met, use one-time write-offs for fixed assets from KŚT groups 3–8, excluding passenger cars.

The annual limit is the equivalent of 50,000 euros. The write-off is de minimis aid, so you have to check the available aid limit and the remaining conditions.

Brand-new fixed assets

A separate mechanism applies to brand-new fixed assets from KŚT groups 3–6 and 8. The combined annual write-off limit is 100,000 zł, and the rules also set minimum purchase values needed to use this option.

These two mechanisms are not the same and have different conditions.

Passenger cars: limits from 2026

From 2026, you should not apply a single 150,000 zł limit to every passenger car. The limit on write-off costs depends on the drivetrain and CO₂ emissions:

• 225,000 zł — an electric or hydrogen-powered car,
• 150,000 zł — a combustion-engine car with CO₂ emissions below 50 g/km,
• 100,000 zł — a combustion-engine car with CO₂ emissions of at least 50 g/km.

If the car's value exceeds the applicable limit, only the corresponding portion of each depreciation write-off is a cost.

To determine the limit, you need reliable data on the drivetrain and emissions of the specific vehicle. It is not worth assuming a limit based solely on the label "hybrid".

VAT when buying a car

The income tax (PIT) limit and the right to deduct VAT are two separate matters.

For a passenger car, an active VAT taxpayer generally deducts:

• 50% of VAT for mixed use,
• 100% of VAT only when the vehicle is used solely for business and the requirements are met — including those on usage rules, the mileage log, and VAT-26.

Non-deducted VAT increases the value taken into account when settling income tax, in line with the applicable rules.

Residential buildings and premises

Residential buildings, residential premises, and rights to such premises are not depreciated for tax purposes. The exclusion applies even when the property is used in the business or rented out.

You can depreciate certain non-residential buildings and premises if they meet the conditions and are not subject to another exclusion.

A private asset brought into the business

Prior private ownership does not automatically preclude bringing an item into the business. You have to correctly determine:

• whether the asset meets the definition of a fixed asset,
• its initial value,
• the date it was put into use,
• the classification and rate,
• the statutory exclusions.

This does not apply to assets whose depreciation is prohibited by law, such as residential property.

Depreciation and lump-sum tax (ryczałt)

On lump-sum tax (ryczałt), the tax is calculated on revenue without reducing it by costs. A depreciation write-off therefore does not lower the ryczałt — regardless of whether the asset was bought before or after choosing this form.

When planning to change the form of taxation, you have to separately establish the asset's history and its tax value. This should not be described as ongoing "deducting depreciation on lump-sum tax".

Selling an asset that is not fully depreciated

On a sale, you have to account for the revenue and determine whether the un-depreciated value can be a cost. For passenger cars and assets covered by special limits, additional restrictions apply.

You must not automatically book the entire remaining value without checking the limit and the write-off history.

The most common mistakes

1. Treating 10,000 zł as part of the definition of a fixed asset.
2. Using a single 150,000 zł limit for all cars in 2026.
3. Depreciating residential premises.
4. Assuming a 100% VAT deduction on every business purchase.
5. Applying the declining-balance method to a passenger car.
6. Accounting for write-offs as a cost on lump-sum tax.
7. Rejecting a private asset solely because it was bought before the business was set up.

Sources

• The PIT Act — text on ISAP
• Fixed assets classification (KŚT) — GUS
• Podatki.gov.pl — deductible expenses

Need to get your fixed assets in order?

Oxyok keeps the register and handles depreciation accounting for a sole proprietorship (JDG). Accounting costs from 49 zł + VAT per month.

Write to Paweł or see Oxyok accounting.

This material is general in nature. The classification, initial value, and car limit must be determined for the specific asset.