Hong Kong Tax Depreciation
Example:
An Asset is purchased in year 1 for 100,000
In the first year, a 60% Bonus Rule Depreciation is allowed; also, in the first year, the Asset is depreciated at 20%...NET after the Bonus Rule...
Asset Year 1
Purchase - 100,000
Bonus - 60,000
Depreciation 40,000 * 20%, or = 8,000
Total Year 1 Depreciation = 68,000
Then, in Year 2, the depreciation should be calculated on the remaining amount, or = 32,000 * 20% = 6,400
Then, in Year 3, the depreciation should be calculated on the remaining amount, or = 25,600 * 20% = 5,120
Each subsequent year the asset is depreciated likewise...
Any thoughts on how to accomplish this?
Thanks,
Michael