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6.2. Depreciation and Amortization

When calculating Egyptian taxable income, assets owned by an enterprise are normally depreciated over their normal useful life using either the straight-line method or the declining-balance method.

The rates for different asset types using the straight-line method are as follows:

Buildings, ships and aircraft 5%
Intangible assets 10%

The rates for different asset types using the declining-balance method are as follows:

Computers 50%
Heavy machinery and equipment 25%
Small machinery and equipment 25%
Vehicles 25%
Furniture 25%
Other tangible assets 25%

Accelerated Depreciation

Egypt allows for an accelerated depreciation of 30% on new machines and equipment in the year in which they are placed into service. After the first year, the normal appreciation rates covered above apply on the value of the assets less the accelerated depreciation.