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6.3. Depreciation and Amortization

When calculating Omani taxable income, assets owned by an enterprise are separated into 2 main groups. Group 1 includes buildings, ships, aircraft, and intangible assets. Group 2 includes mainly machinery and equipment.

Group 1 assets are depreciated using the straight-line method at the following rates:

Buildings built from selected materials (determined by the Secretary General  4%
Building built from other materials  15%
Quays, jetties, pipelines, roads, railways  10%
Ships and aircraft  15%
Hospital buildings and educational establishments  100%

Group 2 assets are pooled into subgroups and depreciated using the declining-balance method at the following rates:

Drilling Equipment  10%
Trucks, cranes, and other heavy equipment  33⅓%
Computers, motor-vehicles, self-propelling machines  33⅓%
Furniture and fixtures  33⅓%
Other machinery and equipment  15%

Intangible assets are depreciated at rates determined by the Secretary General.