E-Business Suite Release 11i.10 and 12: Japan FY2011 Tax Reform, Fixed Assets (FA) Depreciation Rate Change (Doc ID 1400983.1)

Last updated on MARCH 19, 2024

Applies to:

Purpose

 The objective of this note is to assist customers of E-Business Suite to understand the implications of the recently enacted legislative change: Japan FY2011 Tax Reform. A patch supporting this legislative change is available for download. The necessary steps to accommodate this update and the download details are provided in this note.

Scope

 Japan FY2011 Tax Reform:
On November 30th, the Special Tax Bill “the Special Restoration Tax Law” was passed in the Diet (Parliament) to fund the restoration from the Tohoku Earthquake. At the same time, measures contained in the original 2011 proposed tax reform proposals (including the "FA: Depreciation Rate Change for Japanese DB method") will also be adopted for fiscal years beginning on or after April 1st, 2012.

On January 25th 2012, the Government published the new depreciation rates for Japanese DB method. The following is the summary of the change:
- The government plans to change the depreciation rate for the Japanese Declining Balance (DB) Method from the current rate 250% to the new rate 200% for those assets that are acquired after 1st April 2012.
- Companies will need to consider the depreciation rate changes of the ‘Original’ rate, ‘Guarantee’ rate and ‘Revised’ rate for the Japanese DB method.

Details