For the calculation of the amount of depreciation allowance for replacement assets, if the approval of the competent district director with jurisdiction over the place for tax payment has been obtained, the replacement method may be selected in place of the depreciation method that has been adopted as specified in Article 120, paragraph (1), item (ii) or Article 120-2, paragraph (1), item (i) or (ii) (Depreciation Methods for Depreciable Assets).
取替資産の償却費の額の計算については、納税地の所轄税務署長の承認を受けた場合には、その採用している第百二十条第一項第二号又は第百二十条の二第一項第一号若しくは第二号（減価償却資産の償却の方法）に定める償却の方法に代えて、取替法を選定することができる。
The replacement method prescribed in the preceding paragraph is a method of depreciating, as the depreciation allowance for each year, the sum of the following amounts:
The amount calculated, for the replacement asset, by the method adopted from among the former straight-line method, the former Declining-balance Method, the straight-line method, and the Declining-balance Method until it reaches 50 percent of its acquisition price (excluding the amount equivalent to the acquisition price of the new asset set forth in the following item for that year and each year preceding it; and where that asset is an asset acquired on or before December 31, 1952, the amount calculated, as provided by Cabinet Order, as the value on January 1, 1953 prescribed in Article 61, paragraph (3) (Acquisition Costs of Assets Acquired Prior to December 31, 1952) of the Act for that asset);
The acquisition price of the new asset, in the case where, because the replacement asset has become unfit for use, it has been replaced in that year with a new asset of the same type and quality that takes its place.
当該取替資産が使用に耐えなくなつたためその年において種類及び品質を同じくするこれに代わる新たな資産と取り替えた場合におけるその新たな資産の取得価額
The replacement assets prescribed in the preceding two paragraphs are those specified by Ministry of Finance Order from among the Depreciable Assets used in a business that gives rise to business income, such as rails and sleepers, that are used in large quantities for the same purpose and a portion of which becomes unfit for use every year and is replaced in approximately equal quantities.
前二項に規定する取替資産とは、事業所得を生ずべき事業の用に供される軌条、枕木その他多量に同一の目的のために使用される減価償却資産で、毎年使用に耐えなくなつたこれらの資産の一部がほぼ同数量ずつ取り替えられるもののうち財務省令で定めるものをいう。
A Resident who intends to obtain the approval under paragraph (1) must submit to the competent district director with jurisdiction over the place for tax payment, by March 15 of the year in which the Resident intends to adopt the replacement method prescribed in paragraph (2) (referred to as the "replacement method" in the following paragraph and Article 132, paragraph (1) (Special Provisions on Depreciation Allowance for Depreciable Assets, etc. Put to Business Use in the Middle of the Year)), a written application stating the type and name of the Depreciable Assets to which the Resident intends to have paragraph (1) apply, the place where they are located, and other particulars specified by Ministry of Finance Order.
If, upon the submission of the written application referred to in the preceding paragraph, a district director finds that it would be difficult to properly calculate the Resident's amount of business income for each year if the calculation of the depreciation allowance for the Depreciable Assets pertaining to the application were made by the replacement method, the district director may reject the application.
If, upon the submission of the written application referred to in paragraph (4), a district director makes a disposition of approval or rejection of the application, the district director notifies the Resident who made the application to that effect in writing.
税務署長は、第四項の申請書の提出があつた場合において、その申請につき承認又は却下の処分をするときは、その申請をした居住者に対し、書面によりその旨を通知する。
If the written application referred to in paragraph (4) has been submitted and no disposition of approval or rejection of the application has been made by December 31 of the year prescribed in that paragraph (if the Resident who submitted the written application dies or becomes Absent From Japan in the middle of that year, by the time of that death or the start of that Absence From Japan), the approval is deemed to have been granted on that day or at that time.
Read this with the articles around it
depreciation allowancemachine translation
「償却費」
The depreciation of a depreciable asset worked out under Article 49, paragraph (1) of the Income Tax Act.
Defined inArticle 120, paragraph (1)· applies only in this subsection
former straight-line methodmachine translation
「旧定額法」
In Article 120 and the rules on calculating depreciation, the method of depreciating an asset each year by multiplying its acquisition cost less its residual value by a rate set for its useful life, so that the depreciation is the same every year.
Defined inArticle 120, paragraph (1), item (i), (a), (1)· applies only in this division
former declining-balance methodmachine translation
「旧定率法」
In Article 120 and the rules on calculating depreciation, the method of depreciating an asset each year by multiplying its acquisition cost (from the second year, less the depreciation already counted as necessary expenses) by a rate set for its useful life, so that the depreciation falls by a fixed proportion each year.
Defined inArticle 120, paragraph (1), item (i), (a), (2)· applies only in this division and in Part 2, Chapter 1, Section 4, Subsection 4, Division 3
straight-line methodmachine translation
「定額法」
In the subdivisions on depreciation methods and the calculation of depreciation, the straight-line method: depreciating an asset each year by multiplying its acquisition price by a rate for its useful life set so that the depreciation is the same every year.
Defined inArticle 120-2, paragraph (1), item (i), (a), (1)· applies only in this division
declining-balance methodmachine translation
「定率法」
In the subdivisions on depreciation methods and the calculation of depreciation, the declining-balance method: depreciating an asset each year by multiplying its acquisition price, less the depreciation already counted as necessary expenses, by a rate for its useful life set so that the depreciation falls each year by a fixed proportion — one minus twice the straight-line rate (2.5 times for assets acquired on or before 31 March 2012) — and, once that amount falls below the guaranteed depreciation amount, applying a revised rate to the revised acquisition price so that it stays the same each year.
Defined inArticle 120-2, paragraph (1), item (i), (a), (2)· applies only in this division
replacement methodmachine translation
「取替法」
A method of depreciating replacement assets (取替資産), described in Article 121, paragraph (2): depreciation by the method in use until half the acquisition price is written off, plus, in a year when worn-out assets are replaced with new ones of the same kind and quality, the acquisition price of the new assets; a resident needs the district tax office director's (税務署長) approval to adopt it.
Short name set inArticle 121, paragraph (4)· applies only in this provision and in Article 121, paragraph (5); and Article 132, paragraph (1)
district director
税務署長
The head of a tax office (税務署), the local office of the National Tax Agency that deals with taxpayers in its district (Act for Establishment of the Ministry of Finance, Article 24). It is the office a person usually deals with: an income tax return is filed with a district director (Income Tax Act, Article 120, paragraph (1)), and reassessments, determinations and the collection of national tax are done by the district director for the taxpayer's current place for tax payment (Act on General Rules for National Taxes, Articles 30 and 43). A person who objects to what a district director has decided can ask that director to look at it again (再調査の請求) or go straight to the National Tax Tribunal (Article 75, paragraph (1), item (i)) — unless the notice of the decision says officials of a Regional Taxation Bureau or of the National Tax Agency investigated, in which case it counts as the regional commissioner's decision, with the same choice, or as the Commissioner of the National Tax Agency's, which can only be challenged by a request for review to the Commissioner (Article 75, paragraph (2)).
Written by AI using Act for Establishment of the Ministry of Finance, Art. 24, Act on General Rules for National Taxes, Arts. 30, 43, 75 and Income Tax Act, Art. 120 as a reference.