Fixed assets are depreciated either on the basis of declining balance method or straight line method.
Following are prescribed depreciation rates:
|Ships and aircrafts (straight-line method)||10%|
|Buildings and installations (straight-line method)||5%|
|Other operating assets, fixtures and fixed onshore plant including goodwill etc. (declining balance method)||30%|
Oil licenses can be depreciated over their useful life or over a period of 10 years on straight line method. Mining licenses can be depreciated over their useful life or over a period of 4 years on straight line method.
Fixed assets with value less than DKK 50,000 can be written off in the year of acquisition.
Companies are allowed to claim / adjust depreciation against taxable capital gain realised from the sale of depreciable assets. However, such claim cannot reduce the income below zero or less than the balance of depreciable operating assets.