As with the accelerated depreciation provision above, the flexible depreciation provisions allow the capital assets to be written down

at a faster rate than would otherwise be possible. In the case of flexible depreciation for agriculture and fisheries, expenditure on new plant or articles used in agricultural production or commercial fishing activities can be written off 100 per cent in the first year. From 1 January 1997, boars or ships exceeding seven metres in length qualify for the incentive.

Industrial Plant Depreciation (FLEXIBLE)

Industrial plant not previously used in Papua New Guinea is eligible for increased depreciation of up to 100 per cent of cost. The taxpayer may elect the amount to be claimed in any year, but not so as to create a loss.

To qualify, the plant must have a life exceeding five years and be used by the taxpayer or any other person (for example a lessee) in a manufacturing process.

Expenditure on building housing for such plant, or for storing raw materials or finished products, also qualifies.