Depreciation Rates

The useful lives and depreciation rates of depreciable assets are set by lists published by the Ministry of Treasury and Finance. Taxpayers must apply the rates in these lists.

• Straight-line depreciation: the rate is the reciprocal of the useful life (e.g. 20% for an asset with a 5-year life).
• Declining balance method: may be chosen by taxpayers keeping books on the balance sheet basis; the rate is twice the normal rate and may not exceed 50%.
• Passenger cars: subject to expense and depreciation restrictions and special provisions.
• Change of method: a switch from declining balance to straight-line is possible; the reverse is not.

For the current useful life list, refer to the depreciation list published by the Revenue Administration. To get help determining the rate for a specific asset, write to us.