Class 2-Fixed Asset (Tax Depreciation )
Lesson Summary-Fixed Asset Class 2 under Cambodia Tax
- -Fixed Asset Class 2 included computers, electronic information systems ,software and data handling equipment.
- -Depreciation rate is 50%.
- -Depreciation Expense is used reducing/declining balance.
Example 1
XYZ Company has the following computers:
- -12 February 2019, company bought a computer of $1,000 (excluded VAT).
- -30 March 2019, company bought two computers of $3,300 (included VAT).
- -28 December 2019, Company bought a computer of $880 (included VAT).
Required
Calculate tax depreciation expense.
Answer
Depreciation expense =(1,000+3,000+800) x 50%=$2,400.
Note:
- -Cost of Computer excluded VAT because we can claim VAT input from purchasing computers.
- -Full year deprecation expense in year bought, so even February, March or December, Company still depreciated full deprecation during year.