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6.3. Depreciation and Amortization

Fixed assets (except land) are depreciated using straight-line method over the useful life of the asset. The declining-balance method can be adopted for new tangible fixed assets other than buildings, office furniture and automobiles not used for public transport or rent. Tax authorities may allow other depreciation methods if the actual depreciation is higher than calculated at regular rates or according to the taxpayer's accounting practice.

The applicable depreciation rates are as below:

Commercial buildings 3%
Industrial buildings 5%
Office equipment 12.5% to 33.33%
Motor vehicles 12.5% to 20%
Plant and machinery 6.6% to 20%
Furniture 12.5%
Computer programs 33.33%
Intangible assets (installation and expansion costs, research and development costs) 33.33%

Start-up expenses like set-up expenses for companies, projects and increase of capital are depreciated at 33.33% per year over a period of three years.