corporate taxation

Amortization/Depreciation of fixed assets

Amortization/Depreciation of fixed assets


In Romania the amortization regime for fixed assets is as follows:

  • for buildings the straight line method of depreciation is applied;
  • for technology, equipment, tools and facilities like computers, the company has the choice between straight line, accelerated or declining balance method of depreciation 
  • for all other depreciable fixed assets, the company can choose either straight line or declining balance method of depreciation

Straight line depreciation method

This sort of depreciation is determined by applying the rate of depreciation to the value for tax purposes of the asset.

Declining balance depreciation method

This sort of depreciation method is determined by applying a coefficient to the amount of straight line depreciation. The coefficients are listed below:

  • 1.5 if the life of the asset is between 2-5 years
  • 2 if the life of the asset is between 5-10 years
  • 2.5 if the life of the asset is more than 10 years.

Accelerated depreciation method

This sort of depreciation is determined by the following:

  • For the first year of use, the depreciation cannot surpass 50% of the taxable value from the date the fixed asset is recorded as belonging to the company.
  • After the first year and the following years it is in use, the depreciation is determined by the ratio of the remaining depreciable value of the fixed asset for its normal duration of use.