What is tax concession period in SAP FI-AA - Asset Accounting?

SAP Term: tax concession period

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A period in which depreciation exceeding ordinary depreciation can be calculated as a result of tax depreciation specifications. The increased depreciation, because of its profit-reducing character, has a tax deferral effect and is therefore a tax concession.

Smart SAP Assistant

• Key Concepts: 
  Tax concession period is a term used in SAP FI-AA Asset Accounting. It is the period of time during which a company can benefit from tax concessions, such as reduced tax rates or exemptions from certain taxes. The tax concession period is usually determined by the government and can vary from country to country. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, the tax concession period is used to determine the amount of depreciation that can be claimed for an asset. The depreciation amount is calculated based on the length of the tax concession period and the value of the asset. The depreciation amount can then be used to reduce the company's taxable income. 
  
  Tips & Tricks: 
  It is important to keep track of the tax concession period for each asset in order to ensure that the correct amount of depreciation is claimed. Additionally, it is important to stay up-to-date with any changes in the tax laws that may affect the length of the tax concession period. 
  
  Related Information: 
  The tax concession period is closely related to other terms such as depreciation, amortization, and capital allowances. It is important to understand how these terms interact with each other in order to maximize the benefits of tax concessions.