The Korean chart of depreciation consists of:

• 01 book depreciation area
• 02 tax limit area according to Korean Corporate Tax Law (CTL)
• 03 tax area according to Tax Reduction Control Law (TRCL)
• 20 cost accounting area
• 30 consolidation area in KRW
• 31 consolidation area in group currency

In the book depreciation area, the ordinary depreciation plus the additional special depreciation is calculated and posted to G/L accounts.

The tax limit area is used to calculate the tax limit allowed by the Corporate Tax Law and compared to the operational depreciation calculated in area 01. The depreciation calculated in the tax limit area is not posted to the G/L accounts but can be used for reporting.

The tax area is used to calculate the lump sum depreciation. This lump sum depreciation is not posted to the G/L accounts but is only used for reporting.

Using the report RABIKA01, you can display the differences in depreciation amounts and net book value between the bookkeeping area and the tax areas for all assets. Assets, which show a difference, require special reporting to the tax offices. The data from the list created by this report can be reported to the tax authorities.