BMF Revokes Remaining Useful Life Circular of 22 February 2023
The Federal Ministry of Finance (BMF) has, by circular of 1 December 2025, reference IV C 3 - S 2196/00040/006/008, fully revoked the circular of 22 February 2023 on depreciation (AfA - tax depreciation under § 7 EStG) based on a shorter actual useful life pursuant to § 7 Abs. 4 Satz 2 EStG (German Income Tax Act).
What Was Changed
The revoked circular of 22 February 2023 had imposed extensive evidence requirements for claiming a shorter remaining useful life against the standardised depreciation rates under § 7 Abs. 4 Satz 1 EStG. It stood in tension with the case law of the Federal Fiscal Court (BFH), in particular the judgments of 28 July 2021 (IX R 25/19) and 23 January 2024 (IX R 14/23).
With the current circular, the BMF revokes this administrative position without introducing a new rule. The tax authorities thus revert to following the higher court guidance exclusively. A specific appraisal method is no longer required, provided the estimate in the individual case is suitable and captures the relevant determinants of useful life.
Practical Significance
For tax advisers, the additional hurdles of the revoked circular no longer apply. Evidence of a shorter actual useful life may be established by any suitable method, provided it addresses the technical, economic or legal influencing factors in a transparent and plausible manner. Model-based appraisals under the ImmoWertV (German Real Estate Valuation Ordinance 2021) may again play a role. The burden of proof remains with the taxpayer.
The revocation applies to all open cases. Whether and when the tax authorities will publish a new rule is not foreseeable at present.
Sources
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