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Fixed Asset Depreciation
Calculator 2026

Calculate fixed asset depreciation by SRS (VID) categories — linear or degressive method. Full depreciation schedule by year.

SRS 5 categories Linear & degressive method Year-by-year schedule
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Fixed Asset Depreciation in Latvia 2026 — What You Need to Know

Depreciation is the allocation of an asset's cost over its useful life. In Latvia, two types must be distinguished: accounting depreciation (per company policy) and tax depreciation (per SRS categories and rates).

SRS Tax Depreciation Categories 2026

  • Category I — 10%/year: Buildings, structures, engineering works and perennial plantings.
  • Category II — 35%/year: Computers, servers, IT equipment, software.
  • Category III — 30%/year: Technological machinery, production equipment.
  • Category IV — 25%/year: Vehicles.
  • Category V — 20%/year: All other fixed assets.

Linear vs. Degressive Method

Linear method spreads the value in equal instalments: depreciation = (cost − residual value) ÷ useful life. Simple, predictable, suitable for accounting.

Degressive method (used for SRS tax purposes) applies a fixed percentage to the remaining book value each year. It gives higher depreciation in early years — deferring the tax burden to later periods.

Frequently Asked Questions about Depreciation

What is the minimum asset value requiring depreciation?
Each company sets its own capitalisation threshold in its accounting policy. Typically €150–€500. Items below the threshold are expensed immediately.
Can depreciation be accelerated?
SRS regulations set maximum rates per category. Companies may use lower rates, but not higher. New equipment purchases may qualify for a CIT relief (additional 50% deduction of the acquisition cost).
Is land depreciated?
No. Land is not depreciated because its value theoretically does not decrease over time. Buildings on land are depreciated under Category I (10%/year).
When does depreciation start?
Depreciation starts in the month following the asset being placed into service, or in the acquisition month — depending on the company's accounting policy. For SRS tax purposes, depreciation is applied from the start of the tax year.

Disclaimer — calculator results are indicative only

This calculator uses 2026 Latvia tax rates and provides an approximate result for informational purposes only. Results do not replace the professional advice of a certified accountant or tax consultant. Your individual situation (employment type, exemptions, international aspects, contract structure, etc.) may significantly affect actual tax amounts. Balansis (SIA Wonderstore) accepts no liability for decisions made solely on the basis of this tool.

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