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What does non-amortizable assets include?
What does non-amortizable assets include?
The company engaged in fish farming keeps breeding fish (parent fish) in its farm. These fish are used in the production of roe and the increase of fish stocks. In this case, are the breeding fish considered fixed assets, and are they depreciated as fixed assets?
According to the State Tax Service under the Ministry of Economy, depreciation is the gradual deduction of expenses incurred for a long-term asset from the income. Assets are divided into two categories based on their nature: tangible assets and intangible assets.
According to Article 13.2.17 of the Tax Code, fixed assets refer to tangible assets that have a useful life of more than one year and a value exceeding 500 manat, and which are subject to depreciation according to Article 114 of this Code. According to Article 114.2.2, productive livestock (breeding cows, buffaloes, horses, camels, deer, pigs, sheep, goats, breeding bulls, rams, mares, rams, and other productive livestock) are considered non-depreciable assets.
In response to the inquiry, it was stated that fish are not subject to depreciation and are not considered fixed assets.
The company engaged in fish farming keeps breeding fish (parent fish) in its farm. These fish are used in the production of roe and the increase of fish stocks. In this case, are the breeding fish considered fixed assets, and are they depreciated as fixed assets?
According to the State Tax Service under the Ministry of Economy, depreciation is the gradual deduction of expenses incurred for a long-term asset from the income. Assets are divided into two categories based on their nature: tangible assets and intangible assets.
According to Article 13.2.17 of the Tax Code, fixed assets refer to tangible assets that have a useful life of more than one year and a value exceeding 500 manat, and which are subject to depreciation according to Article 114 of this Code. According to Article 114.2.2, productive livestock (breeding cows, buffaloes, horses, camels, deer, pigs, sheep, goats, breeding bulls, rams, mares, rams, and other productive livestock) are considered non-depreciable assets.
In response to the inquiry, it was stated that fish are not subject to depreciation and are not considered fixed assets.