Income taxes
Fixed asset: what is it?
An asset used in the business for more than a year and depreciated
A fixed asset is a complete item (a machine, equipment, a vehicle, a building) used in the business for more than a year. Its value is charged to costs gradually, through depreciation.
Key answers
- What it is
- Owned or co-owned by the taxpayer, acquired or produced, complete and fit for use on the day it is put into use, with an expected useful life of more than a year, used in the business: buildings and structures, machines, equipment, vehicles and other items (art. 22a(1) of the PIT Act). If the initial value does not exceed PLN 10,000, you may skip depreciation and charge the expense to costs in the month the asset is put into use (art. 22d(1)).
- Who it affects
- Entrepreneurs taxed under PIT and CIT. Flat-rate (ryczalt) taxpayers also keep a list of fixed assets, although depreciation does not reduce their tax.
- When
- You enter a fixed asset in the register no later than in the month it is put into use (art. 22d(2)). Depreciation charges start from the first month after the month of entry in the register (art. 22h(1)(1)).
- Where
- In the register (list) of fixed assets and intangibles: for KPiR under art. 22n(2) of the PIT Act, for ryczalt under § 8 of the regulation of 6 September 2025 (Dz.U. 2025 item 1294).
This is information, not legal advice. As of 2026-10. Deadlines and rules may change, so check them in the official source.
