Tax Law - Depreciation

Depreciation is taken over the estimated economic life-time and is only allowed on the original acquisition or manufacturing cost. Generally, the straight-line method or the double declining-balance method are used. The double declining-balance method is used until the amount of the annual depreciation has become equal to or less than the amount computed under the straight-line method.

Intangible fixed assets, such as goodwill or clientele, can only be depreciated under the straight-line method over a depreciation period of at least five years (three years for research and development investments; no minimum depreciation period for investments in audio-visual works).

Ancillary costs may either be deducted as expenses in the year of acquisition or depreciated over a period of time, at the taxpayer's choice.