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May 15, 2026

Part 3 - Chargeability to Tax

Chapter 3 - Depreciation of Capital Assets

Section 4 - Rules for Deduction of Depreciation on Machinery and Plant

Article 94

[GTL Notes: Pooled Machinery and Plant Assets - Balancing Allowance / Charge]

In computing the taxable income for any accounting period - the following shall be considered:

  1. If the accounting period is the period during which the business has ceased, or at the end of which none of the assets in the pool is remaining, where the amount referred to in Clause (1) of Article 92 of this Law is more than the amount referred to in Clause (2) of that Article, the excess amount shall be the balancing allowance for that period, and the depreciation base of the pool of assets during this accounting period shall be nil;

  2. If the amount referred to in Clause (2) of Article 92 of this Law is more than the amount referred to in Clause (1) of that Article, the excess amount shall be the balancing charge for that accounting period, and the depreciation base of that pool of assets during this accounting period shall be nil.