The most common depreciation mistakes happen right at the start – when an asset is placed in the wrong depreciation group, when its entry price is set incorrectly, or when a repair is confused with a technical improvement. Slovakia and the Czech Republic share the concept of tax depreciation, but the thresholds, the number of groups and the periods differ, so the rules must never be mixed. In 2026 Slovakia uses seven groups (0–6) with periods of 2 to 40 years, while the Czech Republic uses six groups (1–6) with periods of 3 to 50 years.
When does an asset have to be depreciated?
The first question is not which group applies, but whether the item is a depreciable asset at all. In Slovakia, tangible assets are depreciated once their entry price reaches at least EUR 1,700 and their useful life exceeds one year. In the Czech Republic, the threshold is an entry price above CZK 80,000. Below these limits the item is treated as low-value property and the cost is usually expensed at once.
Intangible assets follow different logic in each country. In Slovakia, software and licences are not placed in depreciation groups; they are written off over the useful life set in the accounts. In the Czech Republic, tax depreciation of intangible assets was abolished in 2021, so accounting depreciation is used instead.
How are the depreciation groups and periods different?
The Slovak Income Tax Act (No. 595/2003) sets seven groups with fixed periods: 2 years (group 0, electric vehicles), 4 years (group 1, computers and passenger cars), 6 years (group 2, machines and furniture), 8, 12, 20 and 40 years for the higher groups.
The Czech Income Tax Act (No. 586/1992) uses six groups: 3 years (group 1), 5 years (group 2, which now includes passenger cars), 10, 20, 30 and 50 years. A passenger car is therefore depreciated over four years in Slovakia but five years in the Czech Republic – a small but typical example of why the two regimes cannot be copied across the border.
Why does the entry price matter so much?
In both countries the entry price is more than the supplier’s invoice. It includes the costs of acquiring the asset and bringing it into use – transport, assembly, customs duty or installation. Leaving these out is one of the most frequent errors, because the asset is then depreciated from a lower value than it really had.
Example: a company buys a machine and pays extra for transport and assembly. Both amounts belong in the entry price. If the transport is booked separately as an immediate expense, part of the cost is claimed incorrectly and a tax inspection will disallow it.
Repair or technical improvement?
This is a classic trap in both systems. A repair keeps the asset in working condition and is an immediate deductible cost. A technical improvement – an extension, reconstruction or modernisation – increases the asset’s value and is added to the entry price, so it is depreciated over time.
The dividing line is a monetary threshold: EUR 1,700 per tax period in Slovakia and CZK 80,000 in the Czech Republic. Booking a full reconstruction as an ordinary repair is a frequent inspection finding on both sides of the border.
Straight-line or accelerated depreciation?
Both countries let a taxpayer choose between straight-line and accelerated depreciation. Straight-line spreads the cost fairly evenly using fixed rates, while the accelerated method front-loads the deduction into the early years. In Slovakia the accelerated method is available only for assets in groups 2 and 3.
In the Czech Republic the method is chosen when the asset is registered and cannot be changed afterwards, so it is worth deciding at the outset based on when the company wants to claim the cost.
Can depreciation be paused and mistakes corrected?
Yes. In both countries a taxpayer may suspend depreciation for one or more full tax periods, for example in a loss-making year, and the depreciation period is then extended accordingly.
If a mistake has already affected a filed return, it is usually corrected through a supplementary tax return for the period concerned. Before making any change, confirm whether the error was a tax error or only an accounting one, because the correction path differs.
Not sure whether your assets sit in the correct depreciation group and whether the entry price was set without errors under Slovak or Czech rules? We are happy to review your asset register and set it up so it holds up under a tax inspection.
FAQ
What is the minimum price for an asset to be depreciated?
In Slovakia a tangible asset is depreciated once its entry price reaches at least EUR 1,700 and its useful life exceeds one year. In the Czech Republic the threshold is an entry price above CZK 80,000. Below these limits the cost is usually claimed in full in the year of purchase as low-value property.
How long is a passenger car depreciated?
A passenger car falls into a four-year group in Slovakia (group 1) and a five-year group in the Czech Republic (group 2). Slovakia also caps depreciation of luxury cars with an entry price of EUR 48,000 or more. This is a good example of why Slovak and Czech depreciation rules must be applied separately.
Can I change the depreciation method after I start?
In the Czech Republic the choice between straight-line and accelerated depreciation is made when the asset is registered and cannot be changed afterwards. In Slovakia the accelerated method is available only for assets in groups 2 and 3. In both countries it is best to decide the method at the outset, based on when you want to claim the cost.