For tax purposes, the declining balance method may be chosen by taxpayers keeping books on the balance sheet basis; the rate is twice the straight-line rate and may not exceed 50%. A switch from this method to straight-line depreciation is possible, but not the reverse.
Source: Tax Procedure Law No. 213 Art. 315
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DepreciationThe systematic allocation of the cost of non-current assets to expense over their useful lives.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.
Last updated: October 22, 2026 · This definition is for general information only.