Instructions of Government Bodies
IGB-1 - Ministry of Finance Instructions
IGB-1.1 - Instructions on Income Tax
A. Depreciation Deduction
Deductible depreciation allowance shall be computed under the following conditions:
As to buildings, ships, airplanes, drilling instruments and intangible assets:
Buildings and constructions, including roads, bridges, pipelines, storage tanks and port ducks inside the establishment and excluding ready-made light constructions | 5% per annum |
Ships and boats | 10% per annum |
Airplanes and helicopters | 20% per annum |
Drilling instruments | 15% per annum |
Intangible assets: | |
Pre-establishment expenses | 50% per annum |
Trademarks, patents and the like | Amortized on the expected life time of the asset, provided that the amortization allowance shall not exceed 15% per annum. |
These rates apply to the above-mentioned assets existing, as of 01/01/2010, provided that the accumulated depreciations shall not exceed, in any case, the total cost of the asset.
As to other assets:
These assets are divided into groups; each of them referred to as “the group”, and each group is depreciated separately, in accordance with the following:
First Group: computer hardware and software and annexes. They are depreciated at the rate of 33.33% per annum;