See Chart of Depreciation.

When you create a company code using the template for Singapore, the system assigns it chart of depreciation 1SG, which follows Singaporean accounting requirements.

In area 15, you can calculate the capital allowance (using the standard depreciation report) as stipulated in sections 14–21 of the Singaporean Income Tax Act. In the standard system, postings in this area are made to G/L accounts, but you can also use the this area for reporting purposes only.

Once you have calculated the capital allowance, you can run the Capital Allowance Report to display the capital allowance for qualified assets or investment projects. By running the Balancing Adjustment Report, you can display the balancing adjustments in the tax area on sales of fixed assets.

Depreciation area 18 is used to calculate the depreciation that is the basis for calculating deferred income tax. This area derives the depreciation key from area 01 and the depreciation base amount (see Posting Qualifying Costs) posted in area 15. Depreciation in area 18 is not posted to the G/L accounts but is used only for reporting purposes. By running the Depreciation Comparison report, you can calculate the differences between the depreciation in areas 01 and 18.