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Laptops, computers, monitors, printers and routers are just some IT equipment investments many modern companies cannot avoid if they are to operate efficiently. How should such purchases be accounted for in 2025? Can they be deducted immediately as costs, or must they be depreciated? Read our article, “How should a business account for IT equipment purchases in 2025?”
Key characteristics of IT equipment: value and expected useful life
Under Article 22a(1)(2) and (3) of the PIT Act, machinery, equipment, vehicles and other items with an expected useful life exceeding one year, used for the taxpayer's business, are subject to depreciation.
Article 22d states: “Taxpayers may choose not to depreciate assets […] whose initial value […] does not exceed PLN 10,000; expenditure on their acquisition then constitutes tax-deductible costs in the month they are put into use”.
For our question about IT equipment purchases for a business in 2025, these provisions identify two key characteristics.
The first is useful life and the second is value.
Why do they matter? They determine whether equipment is a fixed asset subject to mandatory depreciation.
A device is such an asset if both conditions are met:
- Its expected useful life exceeds one year;
- Its initial value exceeds PLN 10,000, net for an active VAT taxpayer or gross for a VAT-exempt taxpayer.
Meeting both conditions requires entering the equipment in the fixed asset register and depreciating it appropriately. If at least one is not met, there are somewhat broader options…
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How to account for IT equipment worth up to PLN 10,000?
IT equipment worth no more than PLN 10,000, net or gross depending on VAT status, can be accounted for in the following ways:
- Deducting the purchase directly as a one-off cost in the month the equipment is put into use, without entering it in the fixed asset register;
- Entering it in the fixed asset register and making scheduled depreciation charges over the established period;
- Entering it in the fixed asset register and depreciating it in one charge in the month it is put into use or the following month, under Article 22f(3) of the PIT Act.
IT equipment with an initial value exceeding PLN 10,000 in 2025
Does the equipment exceed PLN 10,000? Generally, it must be entered in the fixed asset register.
It must then be correctly depreciated. The available options are:
- Straight-line depreciation, using rates in the PIT Act's appendix;
- Individual straight-line depreciation, if the asset is used or improved;
- Accelerated straight-line depreciation, only for fixed assets used in particular ways;
- Declining-balance depreciation;
- One-off depreciation constituting de minimis aid for small businesses and those starting business in that year;
- One-off depreciation for brand-new fixed assets, under Article 22k(14) of the PIT Act.
IT equipment worth over PLN 10,000 but intended for use for no more than one year
You may buy IT equipment worth over PLN 10,000 but plan to use it in the business for no more than a year, for example because a customer contract is shorter. What then?
Under current rules, this equipment need not be entered in the fixed asset register. It can also be deducted as a one-off cost, even if worth more than PLN 10,000!
However, if actual use ultimately exceeds one year despite the original plan, Article 22e of the PIT Act requires the following in the first month after that year expires:
- Classifying the equipment as a fixed asset at its purchase price or production cost;
- Reducing tax-deductible costs by the difference between the purchase price or production cost and depreciation charges attributable to its previous use, calculated using rates specified in the Annual Depreciation Rates Schedule appended to the PIT Act;
- Applying the appropriate depreciation rates from that schedule throughout the depreciation period;
- Paying the tax office, by the twentieth day of that month, interest calculated from the date acquisition or own production expenditure was deducted to the date use exceeded one year;
- Reporting the calculated interest in the appropriate return.
If you found this article interesting, explore our accounting services and read how we can help you:
Summary
Planning IT equipment purchases in 2025? To be confident that the transaction is accounted for correctly, seek qualified advisers' help.
You will find them at the TaxCoach accounting firm! Contact us today for comprehensive accounting support and services including HR and payroll, tax advice and a virtual office.
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