geringwertige
Geringwertige, in practice abbreviated as GWG from the term Geringwertige Wirtschaftsgüter, refers to assets with a low acquisition cost that can be expensed immediately in the year of purchase under German accounting and tax law. The concept aims to simplify bookkeeping by allowing a one-year deduction for small-value tangible assets used in business operations.
The GWG regime applies to movable, tangible assets used for business purposes, such as small tools, office
GWG treatment affects both tax calculations and financial reporting. It does not apply to land or
Etymology and usage: the term combines “geringwertig” (low-value) with “Wirtschaftsgut” (economic good). In German accounting practice,