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Global Tax Depreciation with DART
Depreciation Analysis & Reporting Tool (DART)
Deloitte's tax professionals use our proprietary Depreciation Analysis & Reporting Tool to help clients drive efficient tax cost recovery calculations and planning through advanced technologies and data analytics.
- The tax reform imperative
- Tax cost recovery computation challenges
- Deloitte can help
- Why Deloitte?
- Meet the leader
The tax reform imperative: Global Depreciation Study
Tax reform brings a new focus on global tax depreciation methods, computations, and basis maintenance—and a new level of complexity to tax compliance and planning for US companies.
The law defines two new categories of income: Global Intangible Low-Taxed Income (GILTI) and Foreign Derived Intangible Income (FDII). Calculating either one requires taxpayers to determine their Qualified Business Asset Investment (QBAI), which must be measured and computed using the alternative depreciation system (ADS) under IRC § 168(g). Many taxpayers who have not historically maintained a separate ADS tax book now need to create and maintain ADS tax depreciation books for both foreign and domestic companies in order to comply with the GILTI provision and substantiate the FDII deduction.
Deloitte’s Global Depreciation Study helps you bridge the gap between your current state and the new tax reform reality. Our dedicated national team of tax cost recovery specialists uses DART to conduct a global tax depreciation analysis and build the ADS tax book you need for FDII, GILTI, and other international tax rules. The study provides:
- Analysis of worldwide fixed asset tax depreciation basis and establishment of required ADS tax books
- Federal, state, and international tax compliance reporting and forms support
- Forward-looking tax cost recovery and tax basis analysis, and tax planning
- Advanced global tax depreciation data analytics and visualization
- Calculations of current-year earnings and profits (E&P) tax depreciation and measurements of QBAI
Top tax cost recovery computation challenges
For many businesses, the fixed asset tax depreciation of plant, property, and equipment (PP&E) can be the single largest deduction on federal and state tax returns. Yet, companies continue to face significant challenges to maintain their tax fixed asset basis and cost recovery calculations in a timely and accurate fashion, including:
- High volume of data in the calculations can obscure the validity and recovery methods of assets and place a heavy stress on a company’s existing infrastructure.
- Multiple fixed asset systems may not be integrated to book records.
- Offline or top-side depreciation schedules often require manual adjustments.
- Complications may arise when fixed asset systems or enterprise resource planning (ERP) systems are upgraded, implemented or timely patches or support are not available.
- Resources and tools needed for calculations may not be available internally.
- State tax depreciation non-conformity with federal rules causes complexities in maintaining separate state computations.
- New tax reform provisions, including FDII and GILTI, are increasing the need and urgency to calculate QBAI and produce the ADS tax book required to measure and compute it.
DART aids clients in managing these challenges by helping to streamline and accelerate tax cost recovery planning and reporting. Deloitte’s DART team is comprised of dedicated national professionals who specialize in assisting companies in maintaining tax basis and cost recovery computations through advanced technologies and data analytics.
Deloitte can help
Deloitte's DART team calculates depreciation expense taxes for more than 200 companies and $20 billion in tax fixed assets. Learn how Deloitte can help lead your efforts to streamline and accelerate your global tax depreciation planning and reporting processes. Our DART services include:
Tax depreciation computation services—assisting you with computation of annual or interim federal and state cost recovery, such as depreciation and gain/loss. We can extract the necessary data from your ERP systems and perform the calculations on our systems, or we can provide skilled personnel to assist you at your location(s) using your in-house technology and solutions.
Tax depreciation analytics—applying advanced data analytics to identify tax planning considerations and potential tax risks related to your fixed asset tax depreciation data, analyze your current depreciation process and recommend improvements, and identify potential cash tax savings.
Global Depreciation Study—helping you address new tax reform realities by conducting a global tax depreciation analysis and building the ADS tax book you need for FDII, GILTI, and other international tax rules.
Budgeting, forecasting, and scenario analysis—providing assistance and insights into your company’s data by calculating tax depreciation for financial forecasts, tax provision, long-range planning, and cash-tax planning.
Tax depreciation book creation—creating additional sets of tax depreciation books, including Alternative Minimum Tax (AMT), Adjusted Current Earnings (ACE), Earnings and Profits (E&P), and non-conforming state regimes.
Software vendor selection—assisting with RFP development, tax fixed asset vendor demonstrations, and tax depreciation software selection. We are highly experienced with tax fixed asset software solutions and integration design as it relates to the major vendors.
System implementation and leading practices—assisting with leading your software implementation/upgrade or augmenting your staff to fill talent.
Additional value-added services:
- Tax basis balance sheet and deferred tax validation
- Post-merger integration and merger readiness
- Tax planning for fixed assets
Why Deloitte for your DART services
Deloitte’s DART team strives to create both value and efficiencies. We can help you in your efforts to streamline and accelerate your global tax depreciation planning and reporting processes.
A dedicated national team of professionals specializing in tax cost recovery—tax and technology specialists with extensive experience in a variety of industries and solutions.
Flexibility—we tailor our services to your organization’s objectives and approach
Innovative use of tax data analytics—we help you understand and analyze your fixed asset tax depreciation data, as well as uncover planning considerations with respect to accelerating tax cost recovery.
Consistency and continuity—we strive to have the same team that meets with your organization during the engagement planning and design process to be the one that will perform the services and follow up.