Article 122Depreciation Methods Using Special Depreciation Rates

①With regard to the calculation of the amount of depreciation allowance for those Depreciable Assets (excluding leased assets set out in Article 120-2, paragraph (1), item (vi) (Depreciation Methods for Depreciable Assets)) that are fishing nets, metals commonly used for type, or other assets specified by Ministry of Finance Order, a Resident may choose, in place of the depreciation method prescribed in Article 120, paragraph (1) (Depreciation Methods for Depreciable Assets) or Article 120-2, paragraph (1) that the Resident has adopted, a method of depreciating by treating the amount calculated by multiplying the acquisition price of the asset by a depreciation rate certified for that asset by the competent regional commissioner with jurisdiction over the place for tax payment as the amount of depreciation allowance for each year.

②A Resident who intends to obtain the certification referred to in the preceding paragraph must submit to the competent regional commissioner with jurisdiction over the place for tax payment, through the competent district director with jurisdiction over the place for tax payment, a written application stating the type and name of the Depreciable Asset to which the Resident intends the provisions of that paragraph to apply, the place where it is located, and other particulars specified by Ministry of Finance Order, with attached documents stating the matters that are to form the basis for calculating the depreciation rate pertaining to that certification.

③When a written application referred to in the preceding paragraph is submitted, the regional commissioner is to examine it without delay and certify the depreciation rate of the Depreciable Asset pertaining to the application.

④Where, after giving the certification referred to in paragraph (1), the regional commissioner finds that special grounds have arisen that make it inappropriate to calculate the amount of depreciation allowance for the Depreciable Asset referred to in that paragraph using the depreciation rate pertaining to that certification, the regional commissioner may change that depreciation rate.

⑤When making a disposition under the preceding two paragraphs, the regional commissioner is to notify the Resident pertaining to that certification to that effect in writing.

⑥Where a disposition under paragraph (3) or (4) has been made, the effect of that disposition is to arise in the calculation of the amount of depreciation allowance for the Depreciable Asset pertaining to that disposition when calculating the amount of real property income, amount of business income, or amount of miscellaneous income for each year on or after the year that includes the date of that disposition.