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
MexicoRUL (≥6.7)RUL (≥6.7)RUL (≥20)RUL (≥6.7)no TABApr 2016

Further Detail and Source Legislation

The tax amortisation periods of intangible assets allowed in Mexico are defined Article 39 of the Mexican Income Tax Law.[1]

Intangible Assets with indefinite life: a maximum 5% of annual amortisation rate is considered in TAB. (Article 39.Paragraph I).
Intangible Assets with definite life: a maximum 15% is considered. (Article 39. Paragraph III).
Intangible assets similar to concessions granted by the government: the number of years of such concession should be considered to estimate the amortisation tax rate (Article 39 Paragraph IV).
Goodwill: not deductible for tax purposes.

  1. ^ Article 39 of the Mexican Income Tax Law of January 2012

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