Article 90 introduces a 'pooling' system for the depreciation of machinery and plant. Assets are grouped into three pools with distinct annual rates: (1) 33% for computers, software, vehicles, heavy machinery (cranes, tractors), and furniture; (2) 10% for drilling rigs; and (3) 15% for all other machinery and plant not specified in the first two categories. This pooled approach simplifies tax calculations by applying a single rate to the collective value of similar assets rather than tracking each individual item's depreciation, facilitating easier compliance for businesses with extensive equipment inventories.
Part 3 - Chargeability to Tax
Chapter 3 - Depreciation of Capital Assets
Section 4 - Rules for Deduction of Depreciation on Machinery and Plant
Article 90
[GTL Notes: Pooled Machinery and Plant Assets - Rates]
Machinery and plant shall be allocated to pools with annual rates of depreciation specified for them as follows:
33% ¹⁄³ annually for the first pool, comprising:
Tractors, cranes and other heavy machinery and plant similar in nature and use, computers, vehicles and self-propelling machines, fixtures, fittings, and furniture.
It also comprises computer software and intellectual property rights;
10% annually for the second pool, comprising drilling rigs;
15% annually for the third pool, comprising any other machinery and plant which are not included in the foregoing Clauses (1) and (2).
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