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.

Summary Table

CountryPatentsTechnologyTrademarkCustomer relationships GoodwillLast update
Canada14.3 (75% max)14.3 (75% max)14.3 (75% max)14.3 (75% max)14.3 (75% max)Apr 2016

Further Detail and Source Legislation

The tax amortisation periods of intangible assets in Canada are defined by the Income Tax Act[1] of the Canada.

Intangible assets, including goodwill[2], considered as “eligible capital expenditure” by Subsection 14(5)[3] of the Law.
As much as 7%[4] of the 'eligible capital expenditure' can be deducted every year up to a maximum of 75%.

  1. ^ Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))
  2. ^ Pages 233 and 234 of Capital Cost Allowance in Canada
  3. ^ Subsection 14(5) of the Income Tax Act
  4. ^ Paragraph 20(1)(b) of the Income Tax Act

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