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Moldova Clarifies Depreciation of Assets Returned for Repair or Replacement — Orbitax Tax News & Alerts

Moldova's State Tax Service recently issued a clarification on the depreciation of fixed assets under warranty that are returned for repair or replacement. Where an asset is returned before it is put into operation, no depreciation is calculated considering that depreciation is calculated on a straight-line basis from the month after an asset is put into operation under the standard depreciation rules. Where an asset is returned after being put into operation, the impact on depreciation will depend on whether or not the asset has been taken out of service. If the asset is not taken out of service, the calculation of depreciation continues uninterrupted, but if the asset is taken out of service, depreciation is not calculated.