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
| Country | Patents | Technology | Trademark | Customer relationships | Goodwill | Last update |
| Japan | 8 | 3-5 | 10 | 5 | 5 | Apr 2016 |
Further Detail and Source Legislation
The tax amortisation periods of intangible assets allowed in Japan are defined in the third appendix of the Ordinance Concerning the useful lives of depreciable assets of March 1965[1]. The following table contains the detail of the amortisation periods for every type of intangible asset contemplated by the Law:
| Asset type | Useful life (years) |
| Fishery right | 10 |
| Right to use a dam | 55 |
| Water right | 20 |
| Patent | 8 |
| Utility model right | 5 |
| Design right | 7 |
| Trademark | 10 |
| Software - Original copy for sale | 3 |
| Software - Others | 5 |
| Breeder's right - Varieties defined (Act No. 83rd year 1, 1998) Seeds and Seedlings Law in Article 4, paragraph 2 | 10 |
| Breeder's right - Other | 8 |
| Goodwill | 5 |
| Right to use a private siding | 30 |
| Contact utility rights-way railway track | 30 |
| Right to use electricity and gas supply facilities | 15 |
| Right to use heat supply facilities | 15 |
| Right to use water facilities | 15 |
| Right to use water for industrial facilities | 15 |
| Rights to use telecommunications facilities | 20 |
