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|
|New Zealand||RUL||RUL||RUL||no TAB||no TAB||Apr 2016|
Further Detail and Source Legislation
Tax amortisation of intangibles in New Zealand is defined by the Income Tax Act of 2007.
Schedule 14 of the Income Tax Act 2007 displays a list of the types of depreciable intangible assets for tax purposes. The list includes, among others: patents, copyright software and trademarks and does not include either customer relationships or goodwill.
Depreciable intangible assets are clasified in two groups of amortisation rules:
- Intangible assets with a fixed life, such as concessions: can be amortised on straight line basis.
- Intangible assets with without a fixed life: can be amortised based on either straight line of fixed percentage ("Diminishing value method") over their estimated useful life.