According to clause 14.1.3 of clause 14.1 of Art. 14 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI with amendments and additions (hereinafter - GCC) depreciation is a systematic distribution of the cost of fixed assets, other non-current and intangible assets, is depreciated over their useful life (operation).

The procedure for calculating the depreciation of fixed assets or intangible assets to determine the object of taxation is established by clause 138.3 of Art. 138 GCC.

In accordance with paragraph 138.3.1 of paragraph 138.3 of Art. 138 NKU calculation of depreciation of fixed assets and intangible assets is carried out in accordance with national regulations (standards) of accounting or international financial reporting standards subject to the restrictions established by clause 14.1.138 clause 14.1 of Art. 14 GCC, subparagraphs 138.3.2 - 138.3.4 of paragraph 138.3 of Art. 138 GCC. In this calculation, the depreciation methods are applied as provided for by national accounting regulations (standards).

To calculate depreciation in accordance with the provisions of clause 138.3, the value of fixed assets and intangible assets is determined without taking into account their revaluation (devaluation, revaluation) carried out in accordance with the provisions of accounting.

Depreciation is not charged for the period of non-use (operation) of fixed assets in economic activity in connection with their modernization, reconstruction, completion, retrofitting and conservation.

Subparagraph 138.3.2 of paragraph 138.3 of Art. 138 GCC is determined that they are not subject to depreciation and are carried out at the expense of relevant sources, in particular, the costs of purchasing / independent production of non-production fixed assets, expenses for repairs, reconstruction, modernization or other improvements of non-production fixed assets.

In particular, the term "non-production fixed assets" means, respectively, fixed assets that are not intended for use in the economic activities of the taxpayer (paragraph five, clause 138.3.2, clause 138.3, article 138 of the Tax Code).

The methodological foundations for the formation of information in accounting, in particular, about fixed assets, as well as disclosure of information about them in the financial statements are set out in the Regulation (standard) of accounting No. 7 "Fixed Assets", approved by order of the Ministry of Finance of Ukraine dated April 27, 2000 No. 92 with changes and additions (hereinafter - P (S) BU 7).

According to clause 23 of P (C) BU 7, depreciation is charged during the useful life (operation) of the object, which is established by the enterprise (in the administrative act) when this object is recognized as an asset (when credited to the balance sheet), and is suspended for the period of its reconstruction, modernization, completion, additional equipment and conservation.

In clause 9 of section. 2 Methodological recommendations on accounting of fixed assets, approved by order of the Ministry of Finance of Ukraine dated 30.09.2003 No. 561 with amendments and additions, it is indicated that fixed assets that are temporarily not in operation (overhaul, reconstruction and other improvement and conservation of objects) , are allocated in accounting in separate groups.

In particular, the fourth paragraph of clause 29 P (C) BU 7 stipulates that depreciation is terminated starting from the month following the month of disposal of the object of fixed assets, transferring it to reconstruction, modernization, completion, additional equipment, conservation. Production depreciation ceases to be charged from the date following the date of disposal of the item of property, plant and equipment.

Depreciation starts from the month following the month in which the item of property, plant and equipment became useful for useful use. Accrual of depreciation when applying the production method starts from the date following the date on which the item of fixed assets became suitable for useful use (paragraph three, clause 29 P (C) BU 7).

That is, for the period of conservation, overhaul, reconstruction and other improvement of fixed assets, their operation is terminated.

Considering the above, fixed assets intended for use in the economic activities of the taxpayer are subject to depreciation in tax accounting.

If fixed assets that are intended for use in the economic activities of the taxpayer in accounting are depreciated during the period of repair or other improvement, and therefore they were withdrawn and put into operation within one month, then depreciation is also charged in tax accounting.