Depreciation on intangible assets
– A business owner?
At a glance:
– The government has announced changes that will apply to the depreciation of intangible assets from July 1, 2016.
– Be aware of the changes to depreciating intangible assets from July 1, 2016.
– Contact us if you require any clarification or advice.
From July 1, 2016, businesses will have the option to self-assess the tax effective life of acquired intangible assets.
This new option will better align the tax treatment of intangible assets over the actual number of years the asset provides an economic benefit.
Smaller innovative companies can have access to faster depreciation to better market their intellectual property.
Businesses still have the option to choose to use the existing statutory effective life for depreciating intangible assets.\
For more information, please click here.
– The new option allows businesses to claim a larger tax deduction over a shorter period.