Fiscal Depreciation
Fiscal Depreciation is the tax-deductible allocation of tangible fixed asset acquisition costs under the Income Tax Law. Governed by Article 11 of the Income Tax Law and PMK No. 96/PMK.03/2009. Permitted methods are straight-line or declining balance. Assets are grouped into 4 categories: Group 1 (4 years), Group 2 (8 years), Group 3 (16 years), Group 4 (20 years), permanent buildings (20 years), and non-permanent buildings (10 years). Fiscal depreciation may differ from commercial depreciation, creating fiscal corrections.
This article is for education, not tax advice.
Example
PT Karya buys machinery for Rp 120 million (Group 2, 8 years). Straight-line fiscal depreciation = Rp 120 million / 8 = Rp 15 million/year. If commercial depreciation is Rp 24 million/year, a positive fiscal correction of Rp 9 million arises.
Source: Article 11 UU PPh No. 36/2008; PMK No. 96/PMK.03/2009
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