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International Tax Depreciation

Introduction

The UK is not the only tax regime offering investors, owners and occupiers valuable incentives to invest in plant and machinery and environmentally friendly equipment, so what about the international picture?

PCC's Fiscal Incentives team operates internationally and in every instance the same fundamental skills are required. This is a blend of local tax and accounting knowledge which is best placed to understand and appreciate regional customs, peculiarities and practices, coupled with the ability to break down the cost of ‘qualifying’ building components, that will stand expert scrutiny and which attract the prescribed rates of tax relief in that Country.

International Tax Depreciation Regimes

Most overseas countries in which we operate have a tax depreciation regime based on accounting treatment, instead of Capital Allowances. Some use a systematic basis over the useful life of the asset and others have prescribed methods spreading the cost over a statutory period, not always equating to the asset's useful life. Some regimes have prescribed statutory rates, whilst others have rates which have become acceptable to the tax authorities through practice.

From our experiences there is a need to embrace and engage local tax expertise who have a long and trusted track record of dealing with the tax or revenue authorities (at local and national level as applicable), not necessarily on depreciation, but on tax matters. We can blend in our experience, an unrivalled 35 year track record of cost segregation skills, analysing construction costs and building components, for taxation purposes and offer a single point solution for clients.

We Will Provide a Desk Top Feasibility Exercise

Most buildings will benefit from a cost segregation service under most regimes but new buildings of a high specification will most certainly benefit.

Whether it is for Capital Allowances or tax depreciation, assets would need to be cost segregated and classified properly, to maximise the end result.

We would be pleased to provide advice and undertake a desk top assessment of expenditure that could qualify for tax depreciation, at no charge subject to information being supplied to us direct.

For further advice concerning any of the issues raised in this briefing, please contact one of our key individuals

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