Deduction for wear and tear refers to the tax depreciation of assets over their useful life. Companies can deduct the costs of acquiring or producing assets for tax purposes by depreciating them over a specified period.
Typical functions of software in the "Deduction for wear and tear" domain are:
Asset management: The software allows for the recording and management of assets, including information such as acquisition date, acquisition cost, useful life, and depreciation rate.
Calculation of depreciation: The software automatically calculates depreciation for each asset based on the specified depreciation methods and rates.
Consideration of tax regulations: The software considers tax regulations and guidelines for asset depreciation to ensure that depreciation is carried out properly.
Automatic postings: The software automatically records depreciation entries and updates the corresponding accounting accounts.