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Can depreciation expense be calculated for a fixed asset acquired at the end of the year?
Can depreciation expense be calculated for a fixed asset acquired at the end of the year?
If a fixed asset is put into operation in December, can annual depreciation be calculated in accordance with Article 114 of the Tax Code of the Republic of Azerbaijan? The legislation states that depreciation is calculated by applying the established rate to the residual (book) value at the end of the tax year.
According to the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan, depreciation deductions are allowed as expenses in accordance with Article 114 of the Tax Code. Taxpayers admitted to horizontal monitoring may calculate depreciation using the straight-line or declining balance method, while other taxpayers may use only the declining balance method (except for intangible assets).
Furthermore, under Article 114.4 of the Tax Code, depreciation for categories of fixed assets under the declining balance method is calculated by applying the depreciation rate established under Article 114.3 to the book residual value of the relevant category as of the end of the tax year.
If a fixed asset is put into operation in December, can annual depreciation be calculated in accordance with Article 114 of the Tax Code of the Republic of Azerbaijan? The legislation states that depreciation is calculated by applying the established rate to the residual (book) value at the end of the tax year.
According to the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan, depreciation deductions are allowed as expenses in accordance with Article 114 of the Tax Code. Taxpayers admitted to horizontal monitoring may calculate depreciation using the straight-line or declining balance method, while other taxpayers may use only the declining balance method (except for intangible assets).
Furthermore, under Article 114.4 of the Tax Code, depreciation for categories of fixed assets under the declining balance method is calculated by applying the depreciation rate established under Article 114.3 to the book residual value of the relevant category as of the end of the tax year.