Asset Revaluation applies from February onwards
When the Producer Price Index (PPI) increases by more than 25%, profit-making enterprises may apply for asset revaluation if they acquire assets in such years. The revaluation difference is exempted from income tax on income, and depreciation, depletion or amortization may be added in accordance with regulations.
Process of applying asset revaluation
Phase 1: Submitted the application within one month starting from the second month (Feb 1st 2024 to Feb 29th 2024) after the end of the fiscal year.
Phase 2: Once receiving the tax bureau’s notice letter, submit details, including revaluation form, comparing balance sheet etc. within 60 days.
On the basis of the tax authority’s review and approval, the profit-making enterprise shall adjust the original asset account from the day after the end of the revaluation year, and treat the revaluation difference as unrealized revaluation appreciation, and shall be exempt from the income tax.
