For the calculation of tax depreciation for fixed assets by December 31, 2018, the provisions of the old Rulebook on the method of classifying fixed assets by group and the determining depreciation method for tax purposes are applied.
What does the Rulebook prescribe?
The regulation mentioned above stipulates that the entire balance of an individual depreciation group from II to V is recognized as depreciation expense, i.e. that the balance of the group is equal to zero if the final balance of an individual depreciation group is less than five average monthly gross wages paid per employee in the Republic in the last month period for which depreciation is calculated.
As the average monthly gross salary for December 2022 was 115,315 dinars, it follows that for individual amortization groups whose balance is up to 576,575 dinars, the entire balance of that group is recognized as depreciation expense for tax purposes.
