In the first fiscal year this depreciable basis rule uses the 30% Flat Rate Polish tax depreciation method. The asset is depreciated at a fixed depreciation rate of 30 percent in the period of addition. After that, the depreciation is suspended for the remainder of the periods in the fiscal year.
In the second fiscal year this depreciable basis rule automatically switches from the 30% Flat Rate Polish tax depreciation method to the Flat Rate method.
| Month | Year 1: 30% (3000.00) | Year 2: 20% (2000.00) | Year 3: 20% (2000.00) | Year 4: 20% (2000.00) | Year 5: 20% (1000.00) |
|---|---|---|---|---|---|
| M1 | 3000.00 | 166.67 | 166.67 | 166.67 | 166.67 |
| M2 | 0.00 | 166.67 | 166.67 | 166.67 | 166.67 |
| M3 | 0.00 | 166.67 | 166.67 | 166.67 | 166.67 |
| M4 | 0.00 | 166.67 | 166.67 | 166.67 | 166.67 |
| M5 | 0.00 | 166.67 | 166.67 | 166.67 | 166.67 |
| M6 | 0.00 | 166.67 | 166.67 | 166.67 | 166.65 |
| M7 | 0.00 | 166.67 | 166.67 | 166.67 | -- |
| M8 | 0.00 | 166.67 | 166.67 | 166.67 | -- |
| M9 | 0.00 | 166.67 | 166.67 | 166.67 | -- |
| M10 | 0.00 | 166.67 | 166.67 | 166.67 | -- |
| M11 | 0.00 | 166.67 | 166.67 | 166.67 | -- |
| M12 | 0.00 | 166.63 | 166.63 | 166.63 | -- |
In this example:
The asset cost is $10,000.
Year 1 uses the 30% Flat Rate Polish tax depreciation method with a depreciation basis of 10,000.
Years 2 through 5 use the Flat Rate method with a depreciation basis of 10,000.
The depreciation reserve amounts at the end of each year are as follows:
Year 1: 3000.00
Year 2: 5000.00
Year 3: 7000.00
Year 4: 9000.00
Year 5: 10,000.00