Class 2-Fixed Asset (Tax Depreciation )

Lesson Summary-Fixed Asset Class 2 under Cambodia Tax

• -Fixed Asset Class 2 included computers, electronic information systems ,software and data handling equipment.
• -Depreciation rate is 50%.
• -Depreciation Expense is used reducing/declining balance.

Example 1

XYZ Company has the following computers:

• -12 February 2019, company bought a computer of $1,000 (excluded VAT).
• -30 March 2019, company bought two computers of $3,300 (included VAT).
• -28 December 2019, Company bought a computer of $880 (included VAT).

Required

Calculate tax depreciation expense.

Answer

Depreciation expense =(1,000+3,000+800) x 50%=$2,400.

Note:

• -Cost of Computer excluded VAT because we can claim VAT input from purchasing computers.
• -Full year deprecation expense in year bought, so even February, March or December, Company still depreciated full deprecation during year.