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May 15, 2026

Article 89 governs the depreciation of intangible assets, excluding computer software and intellectual property which are pooled separately under Article 90. For other intangible assets used in business, the annual deduction is calculated using the straight-line method. The total capital expenditure is divided by the number of years of the asset's 'productive life'. The determination of this productive life is at the discretion of the Tax Authority. This ensures that the tax relief for intangible investments (such as licenses or rights) matches the actual economic benefit the asset provides to the business.

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 89

[GTL Notes: Depreciation for Intangible Assets]

Depreciation shall be allowed under this Section for any accounting period on capital expenditure incurred in acquiring any intangible asset, other than computer software and intellectual property rights provided for in Article 90 of this Law, which are used for business purposes during that period.

The amount of deduction shall be fixed annually by dividing the capital expenditure incurred by the number of years of the productive life of the asset at the discretion of the Authority.