076 Treatment of income tax on expenses related to the Tohoku Earthquake
If a corporation experiences losses that attribute to the Tohoku Earthquake, estimated expenses required for repair of its inventories or fixed assets (either case 1 or 2, whichever bigger amount) can be excluded from its taxable income as special account for losses due to the disaster.
1. The amount of differences between original book value of the damaged or lost assets (written-off inventories excluded) and measured value at the end of the fiscal year.
2. The amount of estimated expenses such as disposal cost, recovery cost, or cleaning cost of rubbles on damaged or lost assets, which are estimated to spend within a year after the disaster. But, this is only about expenses estimated to be spent after the end of the fiscal year.
We would like every company which experienced the devastating earthquake to make the most of this special treatment of taxation.
