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Deductions
Arbitrary depreciation for starters explained
Written by Ilias3 min read
Besides the well-known starter's deduction there's a lesser-known benefit for starting entrepreneurs: arbitrary depreciation. With this you may decide yourself when to depreciate your investments. That can help you steer your tax. This article explains how it works.
What is arbitrary depreciation?
Normally you depreciate a business asset in fixed steps over several years. With arbitrary depreciation you may decide yourself how much you depreciate in which year, as long as you stay within the total depreciation. You may, for example, depreciate faster in a profitable year to lower your profit.
Who is it for?
Arbitrary depreciation for starters applies to entrepreneurs entitled to the starter's deduction. It concerns investments in business assets that also qualify for the investment deduction. Conditions and a maximum amount apply, so check whether your situation falls under it.
What's the benefit?
The big advantage is flexibility. If you make a lot of profit in a certain year, you can depreciate faster to pay less tax that year. If you make little profit, you depreciate less and save the deduction for later. This way you steer your taxable profit across the years.
What should you watch out for?
Arbitrary depreciation is handy, but requires thinking ahead. Faster depreciation means you have less to deduct in later years. So it's not an extra deduction, but a shift in time. Get advice on this so you use the timing optimally.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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