- A corporation commonly owns depreciable fixed assets (e.g. PC) except for the case such as a foreign corporation purely investing in the Japanese stock market. The possession of a depreciable fixed asset causes the Japanese tax implications such as the corporate tax implications and the fixed assets tax implications.
- For corporate tax purposes, the depreciation expense for account purposes would be deductible from taxable income of the corporation within the depreciable limits calculated under the Japanese corporation tax laws.
- For fixed assets tax purposes, the corporation is in principle required to file each depreciable fixed asset increased or decreased in the previous year in certain return every year.
- Please note that the treatment of a depreciable fixed asset for corporate tax purposes could affect that for fixed assets tax purposes (ultimately could affect the net income amount of the corporation), therefore, a corporation should take such impacts into account in keeping a journal.
- For corporate tax purposes, the depreciation expense for account purposes would be deductible from taxable income of the corporation within the depreciable limits calculated under the Japanese corporation tax laws.
- For fixed assets tax purposes, the corporation is in principle required to file each depreciable fixed asset increased or decreased in the previous year in certain return every year.
- Please note that the treatment of a depreciable fixed asset for corporate tax purposes could affect that for fixed assets tax purposes (ultimately could affect the net income amount of the corporation), therefore, a corporation should take such impacts into account in keeping a journal.
