1. Computation.-

The amortization allowance under this section shall be computed on a straight line basis.

2. Amortization License Fee. – 

Where a resident company taxpayer pays any amount as license fee only for the purpose of obtaining permission from an authority approved by the Government to carry on business for two or more years, expenses shall be allowed as license fee at proportionate rate up to last year of the license period and shall be deduct of from the “income of business” of the taxpayer

2. Amortization of pre-commencement expenses.-

the rate of amortization of pre-commencement expenses shall be 20% (twenty percent).

3. Amortization of research and development expenditure.-

The rate of amortization of research and development expenditure shall be 10% (ten percent).

4. Amortization of computer software and applications.-

The rate of amortization of usable computer software and applications shall be allowed as follows, namely:

(a) 20% (twenty percent) in respect of any software and applications developed in Bangladesh;

(b) 10% (ten percent) in respect of any software and applications outside Bangladesh.

5. Amortization of unallowable expenditure.-

If any expenditure claimed by the taxpayer during assessment of tax under this Act is disallowed as capital in nature, the said expenditure of the taxpayer shall be allowed as amortization allowance at the rate of 10% (ten percent) in subsequent tax years.

6. Explanation.—

(1) For the purposes of this section,-

(a) “pre-start-up” expenditure shall mean all such expenditure incurred wholly and exclusively for the purpose of business during the years preceding the year of commencement of commercial operations but not permitted under provisions of the Third Schedule and shall include expenditure on business feasibility study, construction of models or prototypes and trial production;, but shall in no case exceed the actual expenditure and shall not be re-authorized if previously authorized;

(b) “research and development expenditure” means research and development expenditure as defined in clause 33 of section 2;

(c) “License Fee” means spectrum assignment fee paid by a cellular mobile phone operator or any other license fee paid as an integral part of the activities of a company engaged in providing specialized services.