My Flynth

Limitation on amortisation of property

 

 

Under current legislation, in principle, B.V.s may amortize up to a maximum of 50% of the WOZ value (Valuation of Immovable Property Act) on immovable property if this is used for their businesses. Investment properties may be amortized until the book value is equal to 100% of the WOZ value. The government wants to discontinue this differentiation in corporation tax by setting the amortisation limit of all buildings at 100% of the WOZ value. The measure ensures that the difference between book value and future sale value is smaller, resulting in the taxable profit from selling the building being lower.

Please note!

Please note!

Amortisation up to 100% of the WOZ value does not detract from the fact that at a lower market value of the business premises, write-downs are permitted to this lower value in use.