German depreciation and the investment deduction
Straight-line depreciation with the twelfths rule, declining-balance depreciation up to three times the straight-line rate and at most 30 percent for acquisitions between July 2025 and the end of 2027, fixed building rates of 2 to 3 percent. Plus the investment deduction of up to 50 percent before the purchase, with a profit limit and a ceiling of 200,000 € each and a three-year deadline, the 40 percent special depreciation and the 25 percent research allowance, which is paid out even in a loss year. Three modules with fully worked case studies.
Intermediate3 modules62 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
This content is part of the path: Determining profit as a self-employed person· Step 2 of 11· Next step: German bookkeeping obligation — AO s. 141 and HGB s. 241a
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- explain why a fixed asset is written off over its useful life rather than in the year it is paid for
- compute the first annual charge with the twelfths rule of section 7(1) sentence 4 EStG
- derive the declining-balance rate from its two ceilings and name the window in which it applies
- spot the year in which switching to the straight-line method becomes worthwhile
- place the fixed building rates of section 7(4) and the declining-balance rate for new residential buildings under subsection 5a
- check the conditions of the investment deduction under section 7g(1) EStG
- tell the profit limit apart from the per-business ceiling
- work through the add-back and the cost reduction in the year of investment
- assess the consequences if the investment does not happen within the three-year deadline
- combine the special depreciation under subsection 5 with the deduction and ordinary depreciation
- name the three eligible categories of research and development and where they end at market development
- quantify eligible costs for wages, own work and contract research
- explain how depreciation of research equipment is supported under section 3(3a) FZulG
- compute the allowance with the basic rate, the SME increase, the flat-rate surcharge and the ceiling
- describe the path from certificate to application to credit against tax
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 122 minFree — no accountDepreciation (AfA): straight-line, declining-balance, and buildingsWhat you will be able to do
- explain why a fixed asset is written off over its useful life rather than in the year it is paid for
- compute the first annual charge with the twelfths rule of section 7(1) sentence 4 EStG
- derive the declining-balance rate from its two ceilings and name the window in which it applies
- spot the year in which switching to the straight-line method becomes worthwhile
- place the fixed building rates of section 7(4) and the declining-balance rate for new residential buildings under subsection 5a
- Module 221 minIncluded in the full courseInvestment deduction and special depreciation: depreciating before you buyWhat you will be able to do
- check the conditions of the investment deduction under section 7g(1) EStG
- tell the profit limit apart from the per-business ceiling
- work through the add-back and the cost reduction in the year of investment
- assess the consequences if the investment does not happen within the three-year deadline
- combine the special depreciation under subsection 5 with the deduction and ordinary depreciation
- Module 320 minIncluded in the full courseThe research allowance: support that arrives even without a profitWhat you will be able to do
- name the three eligible categories of research and development and where they end at market development
- quantify eligible costs for wages, own work and contract research
- explain how depreciation of research equipment is supported under section 3(3a) FZulG
- compute the allowance with the basic rate, the SME increase, the flat-rate surcharge and the ceiling
- describe the path from certificate to application to credit against tax
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (3)
- Key figures (13)
- Mistakes to avoid (3)
- Official sources (3)
Exercise workbook (Word)
Word
- Learning objectives (3)
- Key figures (13)
- Mistakes to avoid (3)
- Official sources (3)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.