Eligibility of depreciation

The South Baltic Programme Managing Authority reminds that according to article 65 section 11 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council double financing of expenditures is not allowed.  

Provisions of the Programme Manual, section IV General rules on eligibility of costs and budget structure, also indicate that double financing of expenditures is prohibited. 

Therefore, the Managing Authority informs that, according to the position of audit authorities, double financing of expenses also occurs when purchasing an item (or intangible assets) with EU financing and then including its depreciation deductions from the full fixed asset value to the tax deductible expenses without reducing the value of expenditure by amount of EU support received.