Article 5 (1) Taxable income shall be comupted as provided by this Decree and in accordance with the method of commercial accounting regularly employed by the chargeable person in keeping its records and such records shall contain all items of incomings and expenditure. If the method of commercial accounting so employed does not fairly reflect the chargeable person's taxable income the comp utation shall be made in accordance with such method as does fairly reflect the same. Both the actual method and the cash receipts and disbursements method of commercial accounting shall be considered fairly to reflect taxable income. (2) If taxable income is computed on the accrual method of commercial accounting, all items of incomings, costs, and expense shall be taken into account for the income tax year in which the rights or liabilities thereto accrue to or against the chargeable person, while if taxable income is computed on the cash receipts and disbursements method of commercial accounting, all items of incomings shall be taken into account for the income tax year in which they are received and all items of costs and expenses shall be deducted for the income tax year in which they are paid by the chargeable person. (3) A chargeable person shall be entitled to use the method regularly followed in its records for converting one currency to another if such method is generally recognised in commercial account ing Article 6 (1) For the purpose of computing the taxable income of any chargeable person for an income tax year there shall be deducted from its income for that year, subject as hereinafter provided, all costs and expenses wherever incurred by such chargeably person in the production of that income which costs and expenses shall include. (a) the cost to the chargeable person of goods sold or of services rendered by the chargeable person in connection with carrying on trade or business; (b) costs and expenses incurred by the chargeable person for the purpose of carrying on trade or business (exclusive of any amounts deductible under sub-paragraph (a) of this Article 6 (1), of income tax payable by virtue of this Decree and of expenditure in respect of physical or intangible assets) including, without in any way limiting the generality of the foregoing adminstrative, overhead and establishment expenses, contributions and remunerations rewards for services rendered by others, whether they accrue or are paid directly to the persons rendering the services or to the other persons in respect of insurance, pension, or other plans established for the benefit of the persons rendering the services; or (c) (i) an annual allowance for each income tax year in respect of the depreciation, obsolescence, exhaustion or amortization of physical assets and of intangible assets belonging to the chargeable person at the end of that income tax year calculated at a reasonable percentage of the original cost to the chargeable respect of such assets and any additions thereto. In respect of the assets specified in the sub-joined table, the reasonable percentage shall, in the absence of proof to the contrary, be the percentage specified in such table. ( )
