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6.3. Depreciation and Amortization

Fixed assets are depreciated using the straight-line method. Although, other depreciation methods can be applied provided if the tax authorities authorize it. Once the company selects a depreciation method, it is required to be applied consistently.

Following are prescribed depreciation rates:

Buildings 2.5% - 10%
Plant and machinery 10%
Vehicles 10% - 33%
Furniture and office equipment 10%
Tools 25%

Goodwill can be amortized over a period of 5 years. Start-up expenses related to organization or re-organization of a company can be amortized over a period of 5 years, provided it does not exceed 10% of the initial capital stock.