income tax act - Fiji Revenue & Customs Authority

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(4) In determining the effective life, an asset is to be treated as new as at the
date referred to in subparagraph (3).
Maximum annual depreciation rates
21. (1) The maximum annual depreciation rate which may be adopted is the
standard depreciation rate plus a loading of 20% of that rate.
(2) There are 7 standard annual depreciation rates, which correspond to the
effective life of the asset.
(3) The standard and maximum annual depreciation rates and the periods of
effective life to which they apply are set out in Table A below:
TABLE A
Effective life in years Standard Annual
Depreciation Rate
Maximum Annual
Depreciation Rate
2 to fewer than 3 50% 60%
3 to fewer than 5 33 1/3% 40%
5 to fewer than 6 2/3 20% 24%
6 2/3 to fewer than 10 15% 18%
10 to fewer than 20 10% 12%
20 to fewer than 40 5% 6%
40 and over 2 ½% 3%
(4) The cost of any asset which has an effective life of fewer than two years
may be deducted in full in the year it was acquired.
Election to use lower annual depreciation rate
22. (1) A taxpayer may elect to adopt an annual depreciation rate which is lower
than the maximum annual depreciation rate set out in Table A.
(2) An election under subparagraph (1) must be exercised in the year in which
the asset first becomes depreciable and once made, the applicable rate
shall not be altered for the remainder of life of that asset.
(3) A taxpayer shall not adopt an annual depreciation rate which is lower than
the rate calculated as an equal and annual percentage of the asset’s
effective life.
Schedule of assets
23. (1) The Schedule sets out the effective life of specified assets and the
maximum annual depreciation rates that may be adopted under paragraph 21.
(2) If an asset is not listed in the Schedule a taxpayer may adopt the annual
depreciation rate for “plant and machinery not otherwise specified”.
(3) Notwithstanding subparagraphs (1) and (2) a taxpayer may apply to the
Commissioner to determine the effective life of that asset and, upon