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. The deduction covers the computer and its peripherals (display, printer, etc.).
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%|
|There is proof that the computer is in 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 (e.g. a wideband internet connection) used for the production of income are subject to the same deduction rates as computers.
A computer purchased for no more than €1,200
If the part you can deduct (either 50% or 100%) is no more than €1,200, you have the right to deduct it entirely when submitting your tax return for the year when you bought the computer. Any expenses for computer maintenance are deducted from taxes the year when you paid them.
A computer costing more than €1,200
If the part you can deduct is higher than €1,200 and if the computer’s useful life is longer than 3 years, you must deduct the computer’s purchase price in smaller parts known as annual depreciation. Deductions based on depreciation are separate for each piece of equipment you have. The maximum deduction is 25% of the price.
Make the first deduction on your tax return for the year when you bought the computer. You have the right to deduct 25% of the price the first year. Next year and the years after that, you can only deduct 25% of the remaining cost value. But when the remainder is down to €1,200 or less, you can deduct it entirely on your tax return for that year.
If during a future year, you stop using the computer for producing income, i.e. work, you no longer have the right to the above tax-deductions through depreciation.
Example 1: You buy a computer in 2022 for €2,400 and have proof of using it for work purposes. You are entitled to a 50% deduction, i.e. €1,200. You can deduct the full amount of €1,200 in your taxation for the year of purchase.
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: now the remaining undepreciated acquisition cost is less than €1,200 (2,000 – 500 - 375 = €1,125), so you can deduct it in one go.