Indonesia: Updated guidance on tax depreciation and amortization
Guidance on depreciation of tangible assets and/or amortization of intangible assets
Guidance on depreciation of tangible assets and/or amortization of intangible assets
The Minister of Finance issued updated guidance on the depreciation of tangible assets and/or amortization of intangible assets in regulation No. 72 Year 2023 (dated 13 July 2023 and effective 17 July 2023).
The regulation contains new and updated provisions regarding:
- Depreciation of permanent buildings
- Amortization of intangible assets with a useful life of more than 20 years
- Capitalized repair costs of tangible assets
- Insurance compensation from the transfer or withdrawal of assets covered by insurance
- Amortization of software
- Depreciation and amortization of assets in certain business fields
- Procedure for obtaining approval from the Indonesian Tax Office (ITO)
Read a September 2023 report [PDF 280 KB] prepared by the KPMG member firm in Indonesia
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