Extension Of Accelerated Writing-Down Allowances For Tax Purposes

The Income Tax Law was amended in 2012 to introduce accelerated capital allowances for tax purposes on assets purchased between 2012 and 2014, inclusive. The annual writing-down allowance was:

• doubled from 10% to 20% for plant and machinery (if a higher rate than 20% applied to the category of assets concerned, that higher rate continued to be available); and
• increased from 4% to 7% for industrial buildings and hotels.

In 2015 the Income Tax Law was amended again to extend the new higher rates to assets purchased during 2015 and 2016.

Law 165(I)/2017, which was published in the Official Government Gazette on November 24 2017, extends the higher rates for a further two years. For plant and machinery acquired up to the end of 2018, the annual writing-down allowance rate will be 20% or any higher rate applying to the category of assets concerned. For industrial buildings and hotels acquired up to the end of 2018, the annual writing-down allowance will be 7%.