Taxation Effect on Depreciation: Evidence from the Algerian Tax System

In this article, we attempt to examine the fiscal impact of an important element among the three components of self-financing, namely: Depreciation allowances. In this regard we try to study the effect of taxes on each type of depreciation through the Algerian tax code.Through this study, we conclude that taxation influences the decision of the company regarding the choice of depreciation methods. This influence is felt by the implicit tax cost of each type of depreciation. Nevertheless, the introduction of deferred amortization should allow the company, especially in deficit period, to improve its financial situation. Moreover, this depreciation will not be lost. On the contrary, it can be deferred without limitation of time, as long as the results will remain in deficit. Keywords: Depreciation - Tax – Algeri

Optimal Tax Depreciation Lives and Charges under Regulatory Constraints

Depreciation is not only a representation of the loss in asset-value over time.It is also a strategic tool for management and can be used to minimize tax payments.In this paper we derive the depreciation scheme that minimizes the expected value of the present value of future tax payments for two types of constraints on the depreciation method.taxation;optimization;depreciation;uncertainty

Dynamic Tax Depreciation Strategies

The tax depreciation decision potentially has significant impact on the prof- itability of firms and projects. Indeed, the depreciation method chosen for tax purposes affects the timing of tax payments, and, as a consequence, it also affects the after-tax net present value of investment projects. Previous research focusses on the optimal choice of depreciation method under the assumption that the de- preciation method has to be set ex ante and cannot be changed during the useful life of the asset. In reality however, changes are allowed under certain circum- stances. This paper develops a dynamic programming approach to determine the firm’s optimal choice with regard to the initial depreciation method, and whether changes of method are proposed in later periods.Tax depreciation;Net Present Value;Dynamic Programming

Efeitos no investimento das depreciações arbitrárias : utlização e efeitos

Mestrado em Contabilidade, Fiscalidade e Finanças EmpresariaisO trabalho estuda os efeitos no investimento da mudança de escalão das depreciações arbitrárias, de 199,52 para 1000, introduzida pelo decreto-lei nº 159/2009, de 13 de julho, assim como que tipo de empresas mais aproveitaram esta alteração. Baseámos a análise num estudo apresentado por Wielhouwer e Wiersma (2013) sobre o tema: utilização de taxas de depreciação arbitrárias para estimular o investimento, que os autores realizaram por referência à realidade holandesa, do período de 2009 a 2011. A amostra do nosso estudo é constituída por 44 empresas clientes de um gabinete de contabilidade com sede no concelho de Lisboa, incidindo sobre os anos de 2010 a 2012. À semelhança daqueles autores, concluímos que a medida teve uma influência positiva, ainda que ténue, no aumento do investimento abrangido pela discricionariedade das depreciações, sem que isso tivesse afetado o nível de investimento nos demais bens. Por outro lado, em linha com os mesmos autores, observámos, também, que as empresas com maior capacidade financeira foram as que mais investiram em bens abrangidos pela discricionariedade de depreciações e as que registaram prejuízos as que menos investiram nesses bens. Contrariamente às conclusões dos mesmos autores, não encontrámos evidência que as empresas do setor industrial tivessem incrementado o investimento em bens abrangidos pela medida e que a existência de prejuízos reportáveis fiscalmente tivesse desincentivado o investimento nesses bens.We based our analysis in a study presented by Wielhouwer and Wiersma (2013) about the subject: arbitrary tax depreciation to stimulate investments: utilization and effects, encompassing 325 Dutch companies that were clients of an accounting firm (WEA Accountants & Advisers Noord-Holland), from 2009 - 2011. Our sample was collected from 44 clients of an accounting firm located in the District of Lisbon, covering the period from 2010 to 2012. These are small and medium companies, which are fundamentally a reflection of the composition of our Portuguese business. Like those authors, we concluded that the measure had a positive influence, however slight, in increasing assets covered by the discretion of depreciation, resulting that larger firms, with positive net income and higher cash flows were the most that used the facility and those that suffered losses less used. Contrary to the findings the same authours, we did not find any evidence that industrial firms have increased investments in assets covered by the measure and the existence of a loss carry forward has been influenced on the investment of those assets

Materiaalse põhivara arvestus tootmisettevõttes

http://www.ester.ee/record=b4630513*es

A Suggested Framework for the Depreciation of Fixed Assets by the Accelerated Cost Recovery System method (ACRS) As an Alternative to the Straight-Line Method For the Sake of Income Tax Purposes in Palestine An Analytical Study

Tax policy is one of the most important tools, factors, and determinants of investment size since tax policy plays a prominent role in encouraging investment, stimulating economic growth and achieving the overall goals of the economy. More specifically, tax incentives are one of the tools of tax policy that are used to direct investments within a country, especially the system of tax depreciation of fixed assets, which is permitted to be applied by taxpayers in the country. This study suggested an Accelerated Cost Recovery System ACRS), as an alternative to the straight-line method for income tax purposes in Palestine. The study adopted the deductive approach to determine the reality of the study problem, and the analytical approach (descriptive documentary) based on the method of documentary studies in order to collect information, facts, ideas and visions through the published literature on the subject of the study. The study concluded that the implementation of the Accelerated Cost Recovery System model (ACRS) by business enterprises in Palestine will motivate enterprises to increase capital investments in order to take advantage of the benefits of the tax savings, and that the implementation of the Accelerated Cost Recovery System model (ACRS) will lead to a decline in tax revenues in the short term, and an increase in tax revenues in the long run. The study recommended that the implementation of the Accelerated Cost Recovery System requires the issuance of a decision by the Palestinian Cabinet, with the support of the Finance Minister to amend the instructions issued in 2005 regarding the depreciation of the fixed assets, which included allowing the Accelerated Cost Recovery System model (ACRS) to be applied for income tax purposes in Palestine. Consequently, the implementation of the Accelerated Cost Recovery System will require the development of technologies, systems, and methods of work for the tax departments in Palestine. This requires an integrated tax system at the level of all income tax departments, in order to ensure the optimal application of the specified model

Tax policies on behavior of taxpayers

The tax base is one of the most important systems in the economy, at the same time it is one of the main sources of the government’s income. The Albanian state has experienced many changes of this system over the years due to the policies and different regimes that have followed but there has always been a tendency for improvement. The tax system and the informality are the mirror of the economy of the country, especially the favorable tax/fiscal policies that have been adapted to the economy, which bring economical development and integration of all the gaps to a proper economic environment. The study’s research question is: how have all the raid changes in the tax system has affected the taxpayers? Do they feel threat from all this tax control? Furthermore the study focuses on how the business performance has been indicated from the tax control. The data was collected from a survey which was focused in small and big businesses that operates in Tirana. The questionnaire was realized in unities which mainly operates in Tirana. The period in which this data where taken was April 2018. The main finds of the study are the different perception of businesses for the tax control and the impact of the fiscal changes on these businesses. All this fiscal changes that the businesses faced were more in disfavor of the small businesses