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6.3. Depreciation and Amortization

Assets are depreciated on the basis of straight-line method computed in accordance with the accounting rules. Hence, tax depreciation is based on accounting depreciation.

A presidential Decree allocates various assets to five different asset pools and determines depreciation rates ranging from 5% to 25%. However, in certain situations, fixed assets are not allocated to a pool and are not depreciable even if used for the generation of income. This is inter alia the case for fixed assets acquired free of charge, as well as those of non-commercial entities and associations.

Accelerated depreciation is permitted subject to prior approval.

Start-up expenses are not deductible for tax purposes. There are no specific provisions with respect to the amortization of intangibles.