Article 133Special Provisions on Depreciation Allowance for Machinery and Equipment Used Beyond Normal Hours of Use

Where the hours of use of machinery and equipment that a Resident who submits a Blue Return holds (limited to those for which the former straight-line method, former declining-balance method, straight-line method or declining-balance method has been adopted as the method of depreciation to be followed) exceed the average hours of use of that machinery and equipment under the normal economic conditions of the Resident's business that is to generate real property income, business income or timber income, and the Resident has submitted to the competent district director with jurisdiction over the place for tax payment, by the Filing Deadline for income tax for that year, a document stating that the Resident intends to treat as the amount of the depreciation allowance of that machinery and equipment for that year the sum of the amount of the depreciation allowance of that machinery and equipment for that year and the amount calculated by multiplying that amount of depreciation allowance by the additional depreciation ratio calculated, as provided by Ministry of Finance Order, as corresponding to the degree of wear and tear from use beyond that average hours of use of that machinery and equipment, and other particulars specified by Ministry of Finance Order, and retains documents certifying that the machinery and equipment was used beyond those average hours of use, the amount to be included in necessary expenses as the depreciation allowance of that machinery and equipment in calculating the amount of real property income, amount of business income or amount of timber income for that year is, notwithstanding the provisions of the preceding two Articles, that sum; provided, however, that this does not apply where that additional depreciation ratio is less than 10 percent.