On September 30, the Legal Committee of the Solar Energy Association of Ukraine held an open meeting on the topic: \u201cDepreciation of Solar Power Plants in 2025: Tax Authorities Continue to Charge Additional Corporate Income Tax to Producers\u201d.<\/i><\/b><\/p>\n
The meeting was moderated by the Committee\u2019s Chair,<\/span> Ivan Balytskyi<\/b>. The main speaker was <\/span>Natalia Kurilenko<\/b>, Head of the Tax Practice, auditor, and attorney at <\/span>Sokolovskyi & Partners<\/span><\/i> law firm.<\/span><\/p>\n Ms. Kurilenko emphasized: <\/span><\/p>\n \u201cDepreciation of solar power plants in 2025 remains one of the most problematic issues for electricity producers. The tax authorities continue to insist on their approach to charging corporate income tax. Therefore, it is crucial to know all the nuances of documentation and accounting policies in order to defend your interests in disputes.\u201d<\/span><\/i><\/p><\/blockquote>\n In her presentation, the expert gave a detailed overview of depreciation methods, useful life periods of equipment, and the classification of assets into different groups. She highlighted the importance of proper documentation when commissioning solar plants: <\/span><\/p>\n \u201cIf a company decides to depreciate individual components of a power plant, each item must be documented separately with its own inventory number, depreciation term, and technical specifications.\u201d<\/span><\/i><\/p><\/blockquote>\n It was also stressed that businesses should account for both physical and moral depreciation of equipment. Solar panels can be used for 25\u201332 years, gradually losing efficiency; inverters typically last 5\u201325 years; and the service life of batteries is an even more sensitive factor.<\/span><\/p>\n The meeting also covered depreciation methods. According to Natalia Kurilenko, the method must be clearly specified in the company\u2019s accounting policy. For equipment with decreasing efficiency over time, the production method is more appropriate than the straight-line method. She also reminded participants of the option to apply accelerated depreciation, allowed under the Tax Code until 2030 for new facilities.<\/span><\/p>\n Significant attention was paid to residual value. <\/span><\/p>\n \u201cWhen the depreciation period ends, the company must clearly understand what to do with the asset \u2013 dispose of it, sell it, or revalue it. It is essential that all these actions are properly documented, otherwise this will cause issues for both accounting and taxation,\u201d<\/span><\/i> the expert explained.<\/span><\/p><\/blockquote>\n Court practice in 2025 was also discussed. The tax authorities often refuse companies the right to recognize individual solar plant elements as separate assets, insisting on classifying the entire station as a single complex. At the same time, courts have already issued both positive and negative rulings. <\/span><\/p>\n \u201cThe most important thing is for companies to have a strong evidence base: an accounting policy order, commissioning acts for individual elements, technical documents. And of course, it is necessary to refer to the Supreme Court\u2019s practice, which confirms the right to divide equipment into separate assets,\u201d<\/span><\/i> Kurilenko emphasized.<\/span><\/p><\/blockquote>\n Participants received answers to pressing questions and were able to discuss complex aspects of the topic. The meeting confirmed that the issue of solar power plant depreciation remains highly relevant for the industry.<\/span><\/p>\n SEAU reminds members that recordings of committee meetings and webinars are available on the Association\u2019s platform. In the near future, the recording and the expert\u2019s presentation will also be published in the <\/span>Solar Digest<\/span>. Stay tuned for SEAU updates and join upcoming community events!<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":" On September 30, the Legal Committee of the Solar Energy Association of Ukraine held an open meeting on the topic: \u201cDepreciation of Solar Power Plants in 2025: Tax Authorities Continue to Charge Additional Corporate Income Tax to Producers\u201d. The meeting was moderated by the Committee\u2019s Chair, Ivan Balytskyi. The main speaker was Natalia Kurilenko, Head …<\/p>\n