Class 3-Fixed Asset ( Tax Depreciation )

Lesson Summary-Fixed Asset Class 3 under Cambodia Tax

• -Fixed Asset Class 3 included Automobiles, trucks, office equipment and office furniture.
• -Depreciation rate is 25%.
• -Depreciation Expense is used reducing/declining balance.

Example 1

ABC Company has the following fixed assets:

• -12 March 2019, company bought a Printer of $1,100 (included VAT).
• -19 June 2019, company bought air-conditioners of $2,200 (included VAT).
• -20 December 2019, Company bought a car of $11,000 (included VAT but VAT cannot be claimed).

Required

Calculate tax depreciation expense.

Answer

Deprecation expense =(1,000+2,000+11,000) x 20%=$2,800.

Note:

• -Cost of fixed asset excluded VAT if VAT input can be claimed, but VAT input from buying car cannot be claimed, so it is cost of car.
• -Full year deprecation expense in year bought, so even February, March or December, Company still depreciated full deprecation during year.