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Italy Legal Requirement: Super Depreciation (Doc ID 2637190.1)

Last updated on FEBRUARY 08, 2020

Applies to:

Oracle Fusion Assets Cloud Service - Version 11.13.19.10.0 and later
Information in this document applies to any platform.

Goal

Italy legal requirement: super depreciation

My client has a legal requirement to deal with Italian Super-Depreciation. This is Depreciation is over and above the standard depreciation and is only used for tax purposes.
I thought the Bonus Depreciation would address this requirement, however the Bonus Depreciation is restricted by the value of the asset, i.e. the total of standard depreciation and Bonus depreciation does not exceed the value of the asset.
In the case of Super Depreciation the depreciation is an amount over the actual cost of the asset, an example below
 
Asset purchased on 20.01.2019
Purchase price EUR 10,000
Standard depreciation rate 20% (half-reduced in the first FY)
The depreciation plan of the asset is as follows:

FISCAL YEAR ORDINARY DEPRECIATION
(Income Statement) SUPER DEPRECIATION
(Tax Return)
2018 1,000 300
2019 2,000 600
2020 2,000 600
2021 2,000 600
2022 2,000 600
2023 1,000 300

TOTAL 10,000 3,000

Can you advise whether this can be achieved through standard functionality in Fusion or whether there are any workarounds/customizations out there?
 

Solution

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