The Luxembourg tax administration has published Circular No. L.I.R 32/1, which clarifies the optional deferred method of depreciation introduced from the 2017 tax year.
The deferred method is applied in a similar manner as the straight-line method, with an asset depreciated equally over the number of years of its normal useful life based on its acquisition cost less its salvage value, if any. As with the straight-line method, the deferred method may be applied in respect of all assets that…