Asphalt laying - increase in the value of an asset or a separate asset

Asphalt laying - increase in the value of an asset or a separate asset

 

Question:
Hello!

My question is: is the amount for laying asphalt on an existing parking lot submitted as an increase in the value of the land in the declaration under Art. 14 on ZMDT?

Thanks!

 

Answer:

Hello,

It is not necessary to increase the value of the land, because in this case you have another type of asset, falling into category III according to Article 55, paragraph 1 of CITA - road coverage (in this case a separate parking lot). Moreover - if there are inert materials for the design of the parking lot (without such there is no way to lay asphalt) they will also enter together with the value of the asphalt cover in the value of the newly formed asset - parking cover. According to Article 55, paragraph 2 of CITA, the new asset will have an annual depreciation rate of 10%.

We hope we have been helpful.

Greetings!