Depreciation is recognized on a straight line method base on the cost of the asset.
|Rate of Depreciation||%|
|Buildings||1.5 – 4|
|Furniture and fixings||6 – 12|
|Machinery||7 – 25|
In an international deal where special relation exists between the parties and as a result of these relations a different price or conditions were determined, such a deal must be reported for tax as it was done at market price and conditions. Such a deal must be revealed in the yearly tax reports and be indicated what method was used to determine the market price and conditions.
The tax payer can apply for a pre ruling to determine the criteria he must stand up to.
According to market pricing regulations a survey of market conditions must be prepared in order to determine if the international deals between the related parties are at market price.