The
estimated useful life of the fixed assets used by an enterprise registered with
the Philippine Economic Zone Authority (PEZA) for its manufacturing activities
may be changed for purposes of claiming depreciation deduction, both for tax
and financial accounting purposes, if the estimated useful life of the asset previously
adopted is no longer reasonable.
Under
Section 34(F)(3) of the Tax Code, the taxpayer and Commissioner of Internal
Revenue may enter into an agreement in writing on the estimated useful life and
rate of depreciation of any property.
The rate so agreed upon shall be binding on both the taxpayer and the BIR.
However,
if it develops that the useful life of the property originally estimated under
previous factual conditions is no longer reasonable, the law allows the
taxpayer to lengthen or shorten the useful life of the property in light of
prevailing factual considerations.
(BIR
Ruling No. 598-2012, October 25, 2012)
Tax Brief – December 2012
Punongbayan and Araullo
Walang komento:
Mag-post ng isang Komento