Calculation of Depreciation Basis in Fixed Assets

Due to Czech legislation, it is necessary to calculate tax depreciations from the depreciable basis which can be different from acquisition costs. According to the requirements, a depreciation basis by the Czech declining-balance depreciation method for the second and following years of a fixed asset's life should be calculated by the new formula defined in the Income Tax Act.

Changes have been made in the calculation of depreciation amounts by the CZ declining-balance depreciation method for the second and following years of a fixed asset's life by the formula stated above. The tax depreciation is calculated annually and the Force No. of Days option is recommended for calculating the correct depreciation amount.

Calculation of Depreciation Basis in Fixed Assets

See also