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Fixed Asset Depreciation
Calculator 2026

Calculate fixed asset depreciation by 4 SRS (VID) categories per IIN Law art. 11.5 (in force 01.01.2026) — linear or degressive method. Full depreciation schedule by year.

4 IIN Law categories (2026) Linear & degressive method Year-by-year schedule
€
yrs
€
Acquisition cost
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Year 1 depreciation
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Total written off
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Year Opening BV Depreciation Accum. dep. Closing BV Visual
Special cases (no depreciation) • Land, artworks, antiques — no depreciation calculated.
• Intangible assets (patents, licences, trademarks) — linear method, 5 years.
Fixed Asset Depreciation Calculator Latvia 2026 — Balansis

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 IIN Law art. 11.5 categories and rates, in force 01.01.2026).

IIN Law Tax Depreciation Categories 2026 (4 categories)

  • Category a) — 5%/year: Buildings, structures, engineering works and perennial plantings. Linear equivalent: 35 years.
  • Category b) — 10%/year: Technological machinery, railway rolling stock, marine/river fleet vessels, energy equipment. Linear equivalent: 10 years.
  • Category c) — 35%/year: Computers, servers, printers, information systems, software, communications equipment, copiers. Linear equivalent: 3 years.
  • Category d) — 20%/year: All other fixed assets (vehicles, equipment, furniture, etc.). Linear equivalent: 5 years.

Intangible assets (patents, licences, trademarks): linear method, 5 years. Land, artworks, antiques: no depreciation.

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 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 are the VID depreciation rates in Latvia 2026?
Per IIN Law art. 11.5 s.1.1 (in force 01.01.2026) there are 4 categories: a) buildings/structures — degressive 5%/yr, linear 35 yrs; b) technological machinery/energy — degressive 10%/yr, linear 10 yrs; c) IT/software/comms — degressive 35%/yr, linear 3 yrs; d) other fixed assets — degressive 20%/yr, linear 5 yrs. Source: IIN Law art. 11.5, in force 01.01.2026.
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.
Is land depreciated?
No. Land, artworks and antiques are not depreciated. Buildings on land are depreciated under category a) (5%/year degressive, 35 years linear).
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 tax purposes, depreciation is applied from the start of the tax year.
Can accounting depreciation differ from tax depreciation?
Yes. Accounting depreciation (per company policy, IFRS or Latvian standards) and tax depreciation (per IIN Law art. 11.5 categories) can differ. The difference is recorded as a deferred tax liability or asset. Higher early tax depreciation reduces the IIN base sooner, but results in smaller deductions in later years.

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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