Tax depreciation norms
Tax depreciation norms
Material threshold: BGN 700.
Categories of tax depreciable assets (TAAs)
Art. 55. (1) When determining the annual tax depreciations, the tax depreciable assets are distributed in the following categories:
category I – massive buildings, including investment properties, facilities, transmission devices, electrical energy carriers, communication lines;
category II – machines, production equipment, apparatus;
category III – means of transport, excluding cars; road and airstrip coverage;
(suppl., SG No. 110 of 2007, in force from 01.01.2008) category IV – computers, peripheral devices for them, software and the right to use software, mobile phones;
category V – cars;
category VI – tax long-term tangible and intangible assets for which there is a limited period of use according to contractual relations or legal obligation;
category VII – all other depreciable assets.
(2) The annual tax depreciation rates are determined once for the year and cannot exceed the following amounts:
Asset category Annual Maturity in months
. tax
. am rate (%)
Category I 4 300 Category II 30 40 Category III 10 120 Category IV 50 24 Category V 25 48 Category VI VI 100/years of the legal limit Year norm cannot exceed 33 1/3 Category VII 15 80
(3) For category II assets, the annual tax depreciation rate cannot exceed 50 percent, when the following conditions are simultaneously met:
the assets are part of an initial investment
assets are brand new and have not been operated prior to acquisition.
(4) (repealed, SG No. 110 of 2007, in force from 01.01.2008)
(5) (new, SG No. 110 of 2007, in force from 01.01.2008) The acquisition of an asset through the conclusion of a lease agreement, classified as a financial lease according to the accounting legislation, is not a basis for the distribution of this asset in category VI.