The situation
A property purchase with the price allocation and the technical description
A Czech group has bought a logistics hall near Senec, Slovakia, for EUR 8.4 million and an office building in Ostrava. The prices cover land, buildings, a sprinkler system, loading docks and a photovoltaic installation on the hall roof. The auditors want the tax fixed-asset register before year end.
The accounting split is done. The tax split is a different exercise. Each country puts buildings and equipment into its own depreciation groups, and the classification decides the period. The hours go on working out which parts are separate assets and which belong to the building.
What the research has to settle
The rules behind the answer
- Land is not depreciated
- In both countries the part of the price attributable to land is not depreciable for tax. The purchase price has to be allocated between land and building, and the allocation should be documented.
- Statutory groups set the period
- Slovak and Czech income tax law each assign tangible assets to depreciation groups with fixed periods. Buildings fall into the longest groups, and the type of building decides which.
- Separate assets can depreciate faster
- Equipment that is a separate asset, rather than part of the building, may fall into a shorter group. Whether an item such as a roof-mounted photovoltaic installation is separate is a classification question to settle under each country’s rules.
- Tax and accounting diverge
- Depreciation in the accounts follows the accounting rules and the useful life. Tax depreciation follows the statute, so the two registers usually differ and the difference needs tracking.
How it runs in azta
From the question to the document
The question, as you would type it
We bought a logistics hall in Slovakia (EUR 8.4 million including land, sprinklers, loading docks and rooftop PV) and an office building in the Czech Republic. Which tax depreciation group applies to each part, and which parts can be depreciated as separate assets?
You start with
A property purchase with the price allocation and the technical description
- 01
Upload the purchase documents
Add the purchase agreements, the valuation and the technical description. azta reads them and refers back to the passage behind each classification.
File upload· Pro - 02
Research the depreciation rules
Ask how each asset is depreciated for tax in Slovakia and the Czech Republic. azta cites the income tax acts and their annexes of depreciation groups.
Cited research· Free - 03
Check the group definitions
Open the cited group definitions in the reader, in Slovak or Czech, to confirm where each building type sits.
Atlas statute reader - 04
Write the depreciation note
Ask for a note with a table of assets, group, method and the provision for each. Edit it in Canvas.
Canvas · Ask azta· Pro You send
A note on the tax depreciation of each asset, with the land and component split
What you get
A note on the tax depreciation of each asset, with the land and component split
Tax depreciation note · draft
Senec hall and Ostrava office: tax depreciation
Land. The land at Senec and at Ostrava is not depreciable for tax. The price has been allocated on the basis of the valuation report, attached as Annex 1.
Buildings. Both buildings are depreciated in the building groups under each country’s income tax act. The group and period for each, with the provision relied on, are in the table below.
Separate items. We propose to treat the rooftop photovoltaic installation and the dock levellers as separate assets in shorter groups, and the sprinkler system as part of the building, subject to the technical team confirming the description.
Outcomes on your numbers
What azta is worth on this task
Pro pays for itself after
20 minutes a month
At €85 an hour, that is all the time Pro (€27 a month) has to take off your desk to cover its price.
Example figures. Replace them with your own.
- Hours back a year
- 22
- Capacity at your rate
- €1,836
- More property depreciation notes a quarter
- 0.8
- Return on Pro
- 5.7×
- Research
- Drafting
- Your review
A scenario you set, not a promise. The hours that come back go to another client, or deeper into this one.
Want these numbers on your team’s real workload?
Book a demoWhat stays with you
- The allocation of the price between land, building and equipment.
- Classifying borderline items with the technical team.
- The fixed-asset register and the tax return.
Frequently asked questions
- Does azta calculate the depreciation schedule?
- No. It researches the groups, periods and methods and drafts the note. The schedule stays in your fixed-asset system.
- What if we improve the building later?
- Ask about the works and azta researches how each country treats improvements to an existing asset for tax depreciation.
- Can it answer in Czech or Slovak for the local team?
- Yes. Select the note in Canvas and ask for a translation, or ask the question in the language you want the answer in.
