Sydney, NSW, February 20, 2017 –– In recent years, proposals for changing the guidelines on assessing intangible assets are being laid down to give businesses the opportunity to measure the effective life of their intangible assets acquired since 1st of July 2016. The draft legislation is yet to be presented to and approved by the Parliament to become part of the existing tax laws.

Intangible assets are those assets that are likened to intellectual property, which is considered for tax depreciation. Examples of intangible assets are copyright, patent, registered design, and licenses. In the existing rules, these assets have predetermined effective life, based on the capital allowance scheme. For licenses and copyright, the effective life of use is until their effectiveness expires.

To give you an idea how it works with the previous guidelines, this is the existing effective life for intangible assets as stated:

Copyright – 25 years after it was acquired or when the copyright period ends.

Registered design – 15 years

Petty patent – 6 years

Innovation patent – 8 years

Standard patent – 20 years

Rights to telecommunication site access – good for the entire term of the right.

License – the entire term of the license; for the datacasting transmitter license, it’s 15 years; for in-house software, it’s 5 years.

Once the new rule is approved, businesses will be allowed to self-assess the effective life of those intangibles for depreciation purposes. They will also enjoy using statutory EL for depreciation so they maintain their significant value in driving down the company’s tax costs.

To get a good spot in taking advantage of the proposed tax law modification, businesses are recommended to start working on their share of the tasks required. They must provide for the law to take effect by talking to a reputable tax partner that will usher them to success.

For optimal financial security, you must be able to reconcile your capital investments with your expenditures as well as operation costs. That’s how a financial management expert proves crucial in the process of depreciation. They can help you become well informed as you go through the entire process and make sure you are leaning towards making the right decisions.

Getting help from an industry-leading company that can work out your tax depreciation concerns with flying colors is a superb support that will lead you to success. Remember what this task is all about. It is all about lowering down your tax costs without causing stress to the company’s operational guidelines. Only industry experts can deliver the exact same thing that you need for the ultimate financial freedom that your company requires to achieve its established business goals.

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