Amortization period Non-residential buildings

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You will have the right to include depreciation deductions on the purchased premises which, as you indicated, is a non-residential premises used to conduct business activities as tax deductible costs. For the above reasons, the position you presented should be considered correct. Let's see what current depreciation rates are, which are included in Annex to the Personal Income Tax Act. Below we show depreciation rates only for some properties. The name of the fixed asset Depreciation rate. years Non-residential premises.

Years Underground garages and covered parking lots . years and month Merchandise kiosks with a capacity of less than m - permanently philippines photo editor attached to the ground years The depreciation rates described in the table apply to depreciation on general principles for non-residential buildings. The PIT Act provides for additional rules for making depreciation write-offs on buildings, which we will describe below. Important! Only the straight-line method is used to depreciate buildings The degressive method cannot be used Depreciation of used or improved buildings - at individual rates The legislator also provided special forms for the depreciation of used or improved buildings.



But first, let's determine what buildings we are talking about. Building used If the entrepreneur proves that before its acquisition, it was used by an entity other than the entrepreneur for at least a period of months The building has been improved If, before being entered into the register, the expenses incurred by the entrepreneur for improvement amounted to at least % of the initial value of the building Individual depreciation rates for this type of company buildings may be applied for the minimum period referred to in the Act.