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6.3.6. Other Assets

The Tax Code includes special rules concerning depreciable or amortizable assets as mentioned below.

  • The base of amortization in oil and mining investments also includes costs incurred in non-producing areas.
  • The investments performed under contracts in which the taxpayer is required to make contributions of goods, construction or other assets that must be transferred during the execution of the contract or at the moment of its termination can be amortized during the term of the contract or until the transfer occurs.  For such purpose, amortization shall follow the methods mentioned in Sec. 6.3.1.
  • The costs of acquisition, exploration or exploitation of non-renewable natural resources may be amortized in accordance with the straight-line or the unit of production depreciation methods over a period of at least 5 years. In case the project is unsuccessful, the investment may be amortized in the same year that the failure is known or in the 2 following years.
  • Other investments may be amortized over a period of at least 5 years, unless a different term of amortization applies by virtue of the nature of the investment.