Calculation of Decided Values 

Use

In the property tax declaration, you state each asset’s tax book value and tax evaluation amount. However, only one or the other can form the basis for calculating property tax, either the tax book value or the tax evaluation amount. This is then termed the “decided value.”

The regulations state that to determine the decided value, you add up the tax book values of all of the assets in the declaration. You then add up the tax evaluation amounts of all the assets in the declaration. Then you compare the two figures. If the total tax book value is greater than the total tax evaluation amount, you then use each asset’s tax book value as the decided value, and vice versa.

The Property Tax Report calculates each asset’s tax book value and tax evaluation amount and determines the decided value automatically.

Example

Japan Industries Ltd files separate tax declarations with two municipal tax offices. Here are two examples of how the system calculates the decided value.

Tax Office 1

Asset No.	Tax Book Value	Tax Evaluation Amount	Decided Value
10000	100	120	120
10003	200	180	180
10004	300	350	350
10007	200	230	230
Total	800	880	880

In this example, the total tax book value is JPY 800, and the total tax evaluation amount is JPY 880. The system therefore takes each asset’s tax evaluation amount as its decided value.

Tax Office 2

Asset No.	Tax Book Value	Tax Evaluation Amount	Decided Value
20000	120	100	120
20003	280	200	280
20004	300	300	300
20007	200	200	200
Total	900	800	900

In this example, the total tax book value is greater than the total tax evaluation amount, so the decided value is the tax book value.