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|
|China||RUL (≥10)||RUL (≥10)||RUL (≥10)||RUL (≥10)||no TAB||Apr 2016|
Further Detail and Source Legislation
Tax amortisation of intangible assets in China is explained in the Corporate Income Tax Law of March 2007.
Article 67 of the Law states that intangible assets shall be amortised on a straight line basis over a period of not less than 10 years. Intangible assets acquired through investments or acquisitions shall be amortised over their useful lives prescribed under relevant laws or contracts (i.e. concessions). The same article excludes goodwill from this approach by saying that goodwill will be deductible at disposal or liquidation.