As of 19 May 2021, the Coordinating Committee of Chamber of Tax Advisors No. 580/19.05.21 was concluded, relating to the commencement of tax depreciation of the newly acquired building in connection with the issue of the approval decision for a part of the building only.
The topic of this Coordinating Committee was to clarify the issue at which moment and under what conditions the depreciation of the newly acquired building can commence, if the occupancy permit is issued for use of only a part of the building capable of a separate use. The solved case is the construction of office or residential buildings in the manner of “approval minimum / Shell & Core”, where interior spaces of the building are left in the basic design, i.e. not approved, and their completion is realized only on the basis of requirements of a particular user. Adjustment of the spaces by the user may in certain cases take a relatively long time.
The applicants of the Coordination Committee are considering three possible solutions 1) to start depreciation of the whole building already on the basis of a partial occupancy permit, 2) to start depreciation of the whole building only on the basis of the occupancy permit of the last part of the building, or 3) to start depreciation on a pro rata basis.
The standpoint of the General Financial Directorate excluded the possibility of a proportional depreciation and agreed to the start of depreciation of the whole building on the basis of the occupancy permit for use of a part of the building, provided that it is a part that represents the building itself, i.e. it includes at least its common areas and technologies As it basically arises from the „Shell and Core“ principle, i.e. the shell and core of the building.