56. Depreciation in Japan 減価償却

減価償却について英語でまとめました。
The table below provides an overview of depreciation for Japanese corporate tax purposes.

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Overview of depreciation in Japan

Definition of depreciable assets		The following assets which should be depreciated and which are not inventory, securities or deferred assets (excluding those which are not used for business or whose value does not decrease with time): -        Buildings -        (Non-building) structures -        Machinery and equipment -        Vessels -        Aircraft -        Vehicles -        Tools -        Furniture and fixtures -        Mining rights -        Certain other assets
Classification				Depreciation method (for calculating deduction limit)
	I.    Acquired before 1/4/2007	1. Buildings (other than 3)	A. Acquired before 1/4/1998	Pre-2007 straight-line method Pre-2007 declining balance method
			B.  Other than A	Pre-2007 straight-line method
		2. Depreciable fixed assets other than building (other than 3 or 6)		Pre-2007 straight-line method Pre-2007 declining balance method
		3. Depreciable assets for mining (other than 5 or 6)		Pre-2007 straight-line method Pre-2007 declining balance method Pre-2007 production unit method
		4. Depreciable intangible assets, (other than 5) and animals and plants		Pre-2007 straight-line method
		5. Mining rights		Pre-2007 straight-line method Pre-2007 production unit method
		6. Lease assets overseas (for which a relevant contract is entered into before 1/4/2008)		Pre-2007 straight line over lease period
	II.   Acquired on or after 1/4/2007	1. Buildings, and their fixtures/ equipment (other than 3 or 6)	A. Acquired before 1/4/2016	Straight-line method Declining balance method
			B.  Other than A	Straight-line method
		2. Depreciable fixed assets other than 1 (other than 3 or 6)		Straight-line method Declining balance method
		3. Depreciable assets for mining (other than 5 or 6)	A. Buildings and their fixtures/equipment acquired on or after 1/4/2016	Straight-line method Production unit method
			B. Other than A	Straight-line method Declining balance method Production unit method
		4. Depreciable intangible assets, (other than 5 or 6) and animals and plants		Straight-line method
		5. Mining rights		Straight-line method Production unit method
		6. Lease assets overseas (for which a relevant contract is entered on or after 1/4/2008)		Straight line over lease period
Selection of method		A depreciation method is selected for each classification of assets. For certain assets, a depreciation method is selected for each type of assets
Mandatory selection (applied when no method is selected)		1. Acquired before 1/4/2007	A. Depreciable fixed assets other than buildings acquired before 1/4/1998	Pre-2007 declining balance method
			B. Depreciable assets for mining and mining rights	Pre-2007 production unit method
		2. Acquired on or after 1/4/2007	A. Those in above II.1.A. and II.2	Declining balance method
			B. Depreciable assets for mining and mining rights	Production unit method
Change of method		File a change application before the beginning of the fiscal year of the change with the tax office to seek approval.  Approval is deemed to be granted on the end of the fiscal year of change application if no decision is notified by that date.
Deductibility		Depreciation for a fiscal year is deductible up to the limit if the depreciation is recognized as an expense for accounting purposes for the fiscal year
Book value (BV)		Depreciation in excess of the limit does not reduce BV of the asset

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