Revised Depreciation Schedule for Imported Vehicles

Ask AI

BOC CUSTOMS ADMINISTRATIVE ORDER NO. 07-2014: Revised Depreciation Schedule for Imported Vehicles

Getting related questions...
What do you want to know about the law?
Your conversations and searches stay on your device. We do not store or track your activity on our servers. To know more about our privacy commitment see jur.ph/privacy Ask AI provides quick answers grounded in full case texts to avoid mistakes. Always verify with the original text.

Ask AI

Title Supreme Court: Revised Depreciation Schedule for Imported Vehicles

Law: Boc Customs Administrative Order No. 07-2014

Decision Date: Oct 29, 2014

The BOC Customs Administrative Order No. 07-2014 establishes a revised depreciation schedule for imported motor vehicles, detailing specific rates for No-Dollar importations and tax-exempt vehicles owned by diplomatic entities, while repealing previous regulations.

A

Depreciation Schedule for No-Dollar Importation (NDI) Motor Vehicles

Applies to motor vehicles imported under No-Dollar Importation.
Employs the straight line method of depreciation.
Depreciation rates are as follows based on the vehicle's age (year model):
- Current Year: 0% depreciation (no deduction)
- 1 year old: 10% depreciation multiplied by 0.90
- 2 years old: 20% depreciation multiplied by 0.80
- 3 years old: 30% depreciation multiplied by 0.70
- 4 years old: 40% depreciation multiplied by 0.60
- 5 years old: 50% depreciation multiplied by 0.50

Depreciation for Tax-Exempt Vehicles from Diplomatic and Consular Entities

Pertains to vehicles registered or owned by diplomatic and consular officials with tax and duty-free privileges.
When such vehicles are sold or donated to non-privileged persons or entities, specific depreciation rates apply.
For duty computation using Methods 2, 3, or 6 and assessed values such as Japanese or Red Book values:
- Straight line depreciation at 10% per year.
- Maximum total depreciation capped at 50% of original value.
For ad valorem tax computation when based on depreciated sale or transfer value:
- Depreciation rate of 10% per year.
- Total depreciation cannot exceed 50% of original cost or value.

Depreciation for Used Trucks and Heavy Equipment

Applies the straight line depreciation method.
Depreciation rate: 10% per year.
Maximum accumulated depreciation limited to 90% of original value.

Repeal and Amendment of Previous Orders

This Order supersedes Customs Administrative Order (CAO) No. 5-2011.
All other inconsistent orders, memoranda, or circulars are considered revoked, amended, or modified accordingly.

Effectivity and Publication

This Order takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
Requires the deposit of three certified copies with the UP Law Center for record-keeping.

Approving Authorities

The Order is approved by the Commissioner of Customs.
It is also approved by the Secretary of Finance.

END