Fixed Assets Tax Depreciation

The Fixed Assets Tax Depreciation feature calculates and posts tax depreciation in compliance with the Income Tax Act (Law 586/1992 §26 - §33). This feature has a special setup for tax depreciation groups to enable entering rates and coefficients for new depreciation methods with fixed assets tax depreciation.

Each long-term tangible fixed asset belongs to a depreciation group. These groups determine minimal depreciation periods and parameters used for calculating depreciation. The following depreciation methods are provided for long-term tangible fixed asset (FA) depreciations for tax purposes:

Regular – This method is based on the acquisition value and percentage (straight line).
Accelerated – This method is based on the book value and coefficient (declining balance).
Regular based on the acquisition value and percentage (straight-line intangible).

Each long-term fixed asset belongs to a depreciation group. These groups determine minimal depreciation periods and parameters that will be used for calculating depreciation.

Fixed Assets Tax Depreciation

See also