Article 87 provides an enhanced tax incentive for industrial activities by doubling the standard depreciation percentages found in Article 86 (items 1, 2, and 3). This means buildings used for industrial purposes can be depreciated at 8%, 20%, or 30% annually. However, the Law strictly excludes buildings used for storage, offices, employee accommodation, or other general commercial purposes from this accelerated rate. This targeted benefit is designed to support the manufacturing and industrial sectors by allowing for faster recovery of capital invested in core production facilities.
Part 3 - Chargeability to Tax
Chapter 3 - Depreciation of Capital Assets
Section 3 - Rules for Deduction of Depreciation on Buildings, Ships, Aircrafts and Intangible Assets
Article 87
[GTL Notes: Depreciation Rates for Industrial Buildings]
The percentages of depreciation mentioned in Clauses (1), (2) and (3) of the foregoing Article 86 shall be doubled if buildings are used for industrial purposes.
These purposes shall not include the use of buildings for the purposes of storage, office, accommodation for workers or for other commercial purposes.
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