Fixed Assets-Allowed Tax Depreciation

Tax Depreciation Principles of Fixed Assets for Small Taxpayer

Fixed Assets allowed for Depreciation:

1.Allowed fixed assets are used for business purpose except land, building, shop and tourist vehicle.
2. Existing Fixed assets before small taxpayer registration, the value of  fixed asset is 50% of original cost or market value is allowed, but if fixed assets for existing real regime taxpayer that is transferred to small taxpayer, so un-depreciated amount of existing fixed assets is base for tax depreciation.
3.Fixed assets valued more than 1 million riels (Approximate: USD 250) is allowed otherwise treated as a business expense.
4.Owned fixed assets and finance lease fixed assets (lessee responsible for finance lease fixed asset damage or loss) are allowed to record as fixed assets for depreciation expense.

Depreciation Method and Base :

1.Fixed assets are classified as pooled asset.
Tax Depreciation Base = beginning undepreciated value + additional value during year – proceed value of fixed disposal or write off value
2.Full depreciation in year fixed assets are used.
3.Declining method at 30% rated is allowed per year for fixed asset.
4.If the undepreciated value of total pooled of assets account valued less than or equal 1 million riels (Approximate: USD 250), that value is allowed to treat as an expense of that taxable year.