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Certified Public Accountants Tatsuya Ota
26 The Tax Reform Heisei, (5 of 12 措法 Article 42) productivity improvement capital investment promotion tax system has been established. The productivity improvement and capital investment promotion tax system, machinery and equipment that make up the production, such as equipment, sugar tools, furniture and fixtures, buildings, leasehold improvements, construct and in the software, and productivity improvement equipment as prescribed in the industrial competitiveness sugar Enhancement Act Of the (equipment for improvement of operation and production line and tip equipment), sugar and the (construction or production) or the acquisition of things of scale above a certain, certain domestic its productivity sugar improvement equipment that apply to (Section 1 Chapter 5 of 12 of 措法 Article 42) is a special tax that (except when subjected sugar to the use of loans), selective application of the tax credit or special depreciation is recognized sugar if you have used for business of the corporation . I may be said that it is the special tax system, which is currently the most attention.
I think companies to apply an immediate write-off for the first time by the application of productivity-enhancing capital investment promotion tax system also not a few. If you have selected a tax credit, it is only deduct the amount of tax credit income taxes, from business tax and residence tax, of accounting issues do not cause but, accounting for when you select an immediate write-off is an issue You. Immediate write-off, so we are positioned as a special case of special depreciation, deductible by the processing of any of the (disposal method of surplus) how to fund the special depreciation reserve or (direct write method) how to write-off accounting as amortization it means to be recognized. Corporate accounting, sugar because it would distort the proper period income when you expensed the full amount of the purchase price reduced by the direct method, that the disposal of surplus method is appropriate. Corporation that is audited, consolidated subsidiaries that are part of the consolidated group, will result in the disposal method of surplus basically. Accounting treatment in accordance with the disposal method of surplus
Processing (Note) 62,240,000 0.35 = 21,784,000 2. Following fiscal year of (X2 term) (Note) 62,240,000 0.65 = 40,456,000
The amount sugar of the special depreciation reserve corporation has accumulated, from the next fiscal year of the fiscal sugar year in which it is the funding to special subject to amortization for each asset, in accordance with the statutory useful life of special depreciation assets, statutory useful life of 10 years or more those five years, what else has been decided to be included in the amount of gross revenue by equal division in the period corresponding sugar to the statutory useful life those 7 years, 10 years less than 5 years or more of (措法 Article 52 3 Section 5). Therefore, if legal useful life of nine years, you may have to draw down in five years. In this case, it reversed over a five-year period the special depreciation reserve, but with the elimination sugar of taxable temporary differences by Inclusion in Gross Profit, we will reversed a five-year period also deferred tax liabilities.
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