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6.3. Depreciation and Amortization

Depreciation is allowed on capital assets (other than land, fine art, antiques and jewellery) owned by the business and used for its operations.

Depreciation is allowed on a reducing balance method, at the following rates:

Buildings and structures (refer Note 1) 5%  
Computers, electronic information systems, software products (refer Note 2) 25%
Other assets (refer Note 2) 20%

Note 1: If the residual value of the asset at the beginning of the tax year is less than 3% of its historic acquisition cost, then the entire residual value of such asset can be recognized as a tax-deductible expense in that relevant tax year.

Note 2: If the residual value of the asset at the beginning of the tax year is less than 10% of its historic acquisition cost, then the entire residual value of such asset can be recognized as a tax-deductible expense in that relevant tax year.

Intangible assets (including goodwill and incorporation expenses) can be amortized at 15% on a straight-line basis over their useful life.