Germany offers different depreciation schemes. Depreciation is based on either the cost of acquisition or the cost of production. Rates of depreciation are statutorily fixed only for buildings. The Federal Ministry of Finance publishes tables which can be used as guidelines for the calculation of the useful life of most assets. Acceptable methods of depreciation for tangible assets are: the straight-line method and the declining balance method. Examples of straight-line depreciation rates are:
|Office equipment||3 – 33%|
|Plant and machinery||10 – 33%|
Items valued at under EUR 410 may be setoff in the year of acquisition. Alternatively, items with a value between EUR 150 and EUR 1,000 can be pooled. The depreciation of this pool has to be done over five years following the straight-line method and the pool amount is not reduced when assets are taken out of the pool. Intangible assets can be capitalized only if acquired for consideration.