Depreciation is taken over the estimated economic life-time and is only allowed on the original acquisition or manufacturing cost. Generally, the straight-line method or the double declining-balance method are used. The double declining-balance method is used until the amount of the annual depreciation has become equal to or less than the amount computed under the straight-line method.

Intangible fixed assets, such as goodwill or clientele, can only be depreciated under the straight-line method over a depreciation period of at least five years (three years for research and development investments; no minimum depreciation period for investments in audio-visual works).

Ancillary costs may either be deducted as expenses in the year of acquisition or depreciated over a period of time, at the taxpayer's choice.

The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.

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