The House of Representatives recently voted an amendment in the Income Tax Law regarding the capital allowances that can be claimed for certain types of assets.
Specifically, increased capital allowances are available for the following capital expenditure:
- For all plant and machinery acquired during 2017 and 2018, a deduction for wear and tear at 20% per annum will be allowed (increased from 10% per annum).
- For industrial and hotel buildings acquired during 2017 and 2018, a deduction for wear and tear at 7% per annum will be allowed (increased from 4% per annum).
- For buildings used for agricultural and livestock production which were acquired during 2017 and 2018, a deduction for wear and tear at 7% per annum will be allowed (increased from 4% per annum).
