Return to Tax GuidesSUPERCEDED |
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XIV.
Depreciation Method
Taxation Depreciation
Straight line or accelerated can be used. The actual percentages are provided by law. For
straight line, there are special rates for the first year.
| Class |
Depreciation Period |
Examples |
| 1 |
4 years |
data processing equipment, software,
reprographics equipment, some mechanical tools, some agricultural equipment, cars, light
commercial vehicles, buses |
| 2 |
8 years |
machinery and equipment, lorries, agricultural
machinery, fixtures and fittings, furniture, and intangible assets excluding patents |
| 3 |
15 years |
rail-freight vehicles, heavy industry equipment,
patents, goodwill
arising from the purchase of an enterprise |
| 4 |
30 years |
pipe-line and timber constructed buildings |
| 5 |
45 years |
all other buildings |
| Other |
not depreciable |
land, works of art or intangible assets contributed by a
shareholder
for no consideration |
Start-up costs are depreciable over 5 years.
Accounting Depreciation
May be chosen by taxpayer. Land is not depreciable.
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