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
Japan83-51055Apr 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 typeUseful life (years)
Fishery right10
Right to use a dam55
Water right20
Utility model right5
Design right7
Software - Original copy for sale3
Software - Others5
Breeder's right - Varieties defined (Act No. 83rd year 1, 1998) Seeds and Seedlings Law in Article 4, paragraph 210
Breeder's right - Other8
Right to use a private siding30
Contact utility rights-way railway track30
Right to use electricity and gas supply facilities15
Right to use heat supply facilities15
Right to use water facilities15
Right to use water for industrial facilities15
Rights to use telecommunications facilities20

  1. ^ Ordinance Concerning the useful lives of depreciable assets

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