What are exceptional depreciations (AfaA)?

Exceptional depreciation (AfaA) may be considered if an asset loses value prematurely due to special circumstances. They are to be entered in Form AV-EÜR and in Form EÜR from line 29.

An AfaA is granted in addition to linear depreciation if the technical service life differs significantly from the economic one.

Typical reasons for an AfaA:

Damage caused by fire, water, storm, earthquake, landslide, etc.
Total loss or theft of a vehicle
Building damage (e.g. due to a burst pipe)
Undetectable defects in a purchased building
Demolition of a still usable building, provided there was no intention to demolish at the time of purchase
→ In this case: residual book value as AfaA + demolition costs deductible as income-related expenses

After the AfaA has been made, further depreciation is carried out from the following year based on the acquisition or production costs minus the AfaA amount (§ 11c para. 2 EStDV).

Note:
The AfaA must be claimed in the year the damage occurred or at the latest in the year the damage was recognised – even if an insurance payment is expected. A later compensation payment must then be recorded as operating income in the year of receipt.

Conditions and restrictions

An AfaA is only possible for assets depreciated on a linear basis. It is generally excluded for declining balance depreciation – except for buildings.

Important:
For movable assets that are depreciated on a declining balance basis, an AfaA can only be claimed if a switch is made to linear depreciation.

New “electric car depreciation” from July 2025

To promote electromobility, a new depreciation regulation for purely electrically powered vehicles has been introduced. The so-called electric car depreciation applies to business assets purchased new between July 2025 and December 2027 (§ 7 para. 2a EStG).

Graduated rates of electric car depreciation:

75% in the year of acquisition
10% in the 1st following year
5% in the 2nd following year
5% in the 3rd following year
3% in the 4th following year
2% in the 5th following year

Important notes:

The vehicles must meet the requirements of § 9 para. 2 KraftStG (e.g. also e-trucks, e-commercial vehicles, buses).
Depreciation is exclusively over six years.
No combination with special depreciation possible.
A switch to other types of depreciation is excluded.