6.3. Depreciation and Amortization
Tangible and intangible assets exceeding KGS 10,000 in value (except goodwill) are depreciated on the basis of the declining balance method.
The applicable depreciation rates are as below:
| Group I: Cars, automobile, and tractor equipment for use on roads, special instruments, sundries, and accessories; computers, telephone sets, peripherals, and equipment for data processing | 30% |
| Group II: Automotive transport rolling stock, trucks, buses, special automobiles, and trailers, construction equipment, machines, and equipment for all sectors of industry, including the foundry, smith-pressing equipment, electronic, and simple equipment, agricultural machines, office furniture, intangible assets | 25% |
| Group III: Fixed assets not included in other groups | 20% |
| Group IV: Railroad, sea and river transport vehicles, power machines, and equipment: thermal-engineering equipment, turbine equipment, electric motors, and diesel-generators, electricity transmission, and communication facilities, pipelines | 10% |
| Group V : Buildings and construction | 10% |
| Group VI : Taxpayer’s costs of geological preparation of deposit reserves, design and engineering-research works, and obtaining the license for the use of deposits, as well as mining-capital and mining pre-works aimed at further extraction of minerals, as well as the fixed assets of the mining and/or mining-processing enterprises put into operation and actually used in deposit exploration | 50% |
Building and constructions may be depreciated at the rate of 20% on straight-line method after 20 years of operation / usage.