Computers and data communications connections
If you use a computer for work, you can deduct the acquisition costs as expenses for the production of income.
If requested, you must specify how much and for what purposes you use the computer in your work. The deduction amount also depends on whether you use the computer for personal purposes and how many computers you have in your household.
You can deduct the acquisition price of a computer as follows:
|No proof of work-related use of the computer||0%|
|Proof of work-related use||50%|
|There is proof that the computer has been used primarily for work purposes or for acquiring considerable secondary income.||100%|
Data communications connections
Charges for data communications connections (e.g. internet connection) used for the production of income are subject to the same deduction rates as computers.
You can deduct the acquisition cost of a tool as a depreciation
Make the first deduction in the year of acquisition. You can continue to make deductions for the item as annual depreciation up until the year when the item is no longer used for producing income.
You can deduct the acquisition cost of a computer as annual depreciation. The deduction is 25% of the remaining undepreciated acquisition cost every year. If the maximum acquisition cost is no more than €1,000, you can deduct it in one go.
Example 1: You buy a computer for €2,000 and have proof of using it for work purposes. You are entitled to a 50% deduction, i.e. €1,000. You can deduct the full amount of €1,000 in the year of acquisition.
Example 2: You buy a computer for €2,000 and use it primarily for work purposes. You are entitled to a 100% deduction. In other words, you can deduct €2,000 using the declining-balance method.
Year 1: 25% depreciation x €2,000 = €500. The approved deduction is €500.
Calculate the following year’s depreciation from the remaining undepreciated acquisition cost, which is: €2,000 - €500 = €1,500.
Year 2: 25% depreciation x €1,500 = €375
Year 3: 25% depreciation x €1,125 = €281.25
Year 4: the undepreciated acquisition cost is less than €1,000 (1,125 - 281.25 = €843.75), so you can deduct it in one go.
A computer purchased for less than EUR 1,000
You can deduct the price for the computer as one single deduction in the acquisition year.
The acquisition price for other tools priced over €1,000 can also be deducted as one single deduction, if the probable economic life of the tool is less than 3 years. Give an account of the economic life of the tool.