Decree of 15 Sha’ban 1445, corresponding to February 25, 2024, establishing the depreciation period for fixed assets, applied for the determination of taxable income

A new decree, implementing the legal provisions of Article 141 of the Code of Direct Taxes and Similar Levies (CIDTA), has been published to establish the depreciation period for fixed assets.

This decree aims to determine taxable income by taking into account the appropriate depreciation period for fixed assets.

The fixed assets covered by this decree include both tangible and intangible assets, which are essential for many businesses in their commercial operations.

The depreciation period for each type of fixed asset is specified in the appendix to this decree, which provides a detailed list with the corresponding depreciation periods.

It is emphasized that the depreciation period for fixed assets, whether tangible or intangible, begins either on the date they are recorded on the balance sheet or on the date they enter service, depending on the circumstances of their acquisition or creation.

It should also be noted that fixed assets fully depreciated on the balance sheet for the fiscal year ending in 2023 are not subject to the provisions of this decree, thus ensuring consistent application of depreciation rules.

The depreciation periods listed in the appendix to this decree apply from the fiscal year ending in 2023 for calculating the depreciation of fixed assets, whether tangible or intangible, recorded on the balance sheet.

This decree therefore provides a clear and precise framework for calculating the depreciation of fixed assets, contributing to transparent tax management that complies with applicable legal standards.

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