Tax Update: Minister of Finance Regulation Number 72 of 2023 regarding the Depreciation of Tangible Assets and/or Amortization of Intangible Assets.
The government has issued Minister of Finance Regulation Number 72 of 2023 (MoFR 72/2023) regarding the Depreciation of Tangible Assets and/or Amortization of Intangible Assets. The purpose of enacting MoFR 72/2023 is to enhance legal certainty, fairness, and facilitate the calculation of depreciation of tangible assets and/or amortization of intangible assets for taxation purposes.
MoFR 72/2023 emphasizes the importance of accurately classifying assets. If taxpayers have doubts, it would be better to submit a request to the Director General of Taxes to obtain approval of the useful life group to ensure the proper grouping of assets and prevent potential Tax Auditor corrections.