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July 17, 2026
Article 78 establishes a rule for determining the depreciable basis of an asset. It stipulates that any capital expenditure borne directly or indirectly by the Government or any person other than the taxpayer shall not be regarded as 'capital expenditure' for the purposes of claiming depreciation. This prevents taxpayers from claiming tax allowances on assets they did not personally fund. If an asset is subsidized or gifted, the taxpayer can only depreciate the portion they actually paid for, ensuring that tax relief is strictly linked to the taxpayer's own capital investment.
Article 78
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