Enter what the asset cost, what it should be worth at the end of its life, and how long you will use it. Choose a method and see the depreciation charge, accumulated depreciation and net book value after any year.
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Straight-line charges the same amount every year: (cost − salvage value) ÷ useful life. Reducing balance charges a fixed percentage of the remaining book value, so the charge is larger in the early years and falls over time. Pick the method that best matches how the asset loses value, and apply it consistently.
Each year you debit depreciation expense and credit accumulated depreciation. The expense reduces profit; the accumulated balance reduces the asset on the balance sheet to its net book value. UAE Corporate Tax is calculated from accounting profit with adjustments, so keeping a clean fixed-asset schedule matters at filing time.
Annual depreciation = (asset cost − salvage value) ÷ useful life in years. An AED 60,000 vehicle with AED 10,000 salvage value over 5 years depreciates AED 10,000 a year.
Net book value (NBV) is the asset's cost minus accumulated depreciation. It is the amount shown for the asset on the balance sheet and is not necessarily what it would sell for.
No. Depreciation stops once net book value reaches the salvage value. This calculator caps the charge so book value never falls below it.
Land is normally not depreciated because it does not wear out. Buildings and fit-out on the land are depreciated over their useful lives.