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.
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Further Detail and Source Legislation
The tax amortisation periods of intangible assets in Canada are defined by the Income Tax Act of the Canada.
Intangible assets, including goodwill, considered as “eligible capital expenditure” by Subsection 14(5) of the Law.
Before 2017, as much as 7% of the 'eligible capital expenditure' could be deducted every year up to a maximum of 75%. As of 2017, this concept is repealed.
Starting with January 1, 2017, capital cost allowance class 14.1 was introduced.
Intangible assets acquired after January 1, 2017 will be fully depreciable at a rate of 5% per year.