Article 22 - Depreciation

(1) Subject to Articles 22(2) and 23, a QFC Entity shall be entitled to a deduction for the depreciation or other impairment of a tangible fixed asset acquired for the purpose of its Licensed Activity of an amount equal to the depreciation charged in its accounts.
(2) Where depreciation is not calculated in accordance with GAAP, the deduction shall be restricted to the amount which would have been charged under GAAP.
(3) The total tax deduction for the depreciation of an asset shall not exceed the original cost of the asset.
(4) The reversal of a depreciation charge on an asset is taxable up to the original cost of the asset.
(5) The original cost of an asset to a QFC Entity shall be the lower of the cost incurred by the QFC Entity in acquiring the asset and the Market Value of the asset at the time it was acquired by the QFC Entity.
Amended (as from 18th June 2014)