The Government of Belarus, by its Decree No. 229 of April 15, allowed Belarusian companies and individual entrepreneurs not to accrue depreciation in 2020. The document was adopted "in order to overcome the negative consequences of the current epidemiological situation in the world," the press service of the Council of Ministers said.
In accordance with the decree, the management of organizations and individual entrepreneurs received the right to decide not to accrue depreciation for all or individual objects of fixed assets and intangible assets. At the same time, their standard service lives and useful lives are extended for the period during which depreciation is not accrued.
Organizations whose property is in state ownership, as well as organizations with a state share, must notify the higher authorities of the decision to not accrue depreciation within three days after such a decision.
The resolution will enter into force after official publication and will extend its effect to relations that arose since January 1, 2020.
Depreciation is the over-time loss of value of fixed assets expressed in money. For companies, in fact, this is part of the cost that forms the cost of production. The authorities have periodically allowed business not to charge depreciation. There are previous cases for example in woodworking enterprises.
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