A Capital Asset is a single item of expenditure of the business amounting to AED 5,000,000 or more excluding the tax, on which tax is payable and which has estimated useful life equal or longer than:

1. 10 years in case of a building or a part thereof.

2. 5 years for all Capital Assets other than buildings or parts thereof.

Items of stock, which are for resale, shall not be treated as capital assets.

Expenditure consisting of smaller sums which collectively amount to AED 5,000,000 or more shall be treated as a single item of expenditure of AED 5,000,000 or more for the purposes of this Article where the sums are staged payments for any of the following:

1. For the purchase of a building.

2. For the construction of a building.

3. In relation to an extension, refurbishment, renewal, fitting out, or other work undertaken to a building, except that where there is a distinct break between any such works being undertaken they shall be taken to be separate items of expenditure.

4. For the purchase, construction, assembly or installation of any goods or immovable property where components are supplied separately for assembly.