What useful life should be considered when estimating the TAB factor of an intangible asset?
Amortisation of intangible assets is not always tax deductible. Its deductibility depends on the corporate income tax legislation of single countries. Most countries define maximum amortisation rates or minimum number of years in which the amortisation of intangible assets can be deducted, if at all. This page displays the legal tax amortisation periods of the main types of intangible assets.
|Country||Patents||Technology||Trademark||Customer relationships||Goodwill||Last update|
|Australia||20||5||no TAB||no TAB||no TAB||Apr 2016|
Further Detail and Source Legislation
Tax amortisation of intangibles in Australia is explained in the Income Tax Assessment Act 1997 with amendments up to Act No. 50 of 2012.
Depreciating assets are listed in Subsection (2) of Section 40.30 of the Act.
Patents, licenses and software are included in the list but goodwill, trademarks and customer relationships are excluded.
As of July 2015, the useful life of In-house software increased from 4 years to 5.
Section 40.95 of the Act shows a table with the effective life of intangible depreciating assets.
|Asset type||Useful life (years)|
|Copyright||Min(25,End of copyright)|
|A licence||Term of the licence|
|A licence relating to a copyright||Min(25,End of licence)|
|Spectrum licence||Term of the licence|
|Datacasting transmitter licence||15|
|Telecommunications site access right||Term of the right|