This study focused on the tax effects associated with asset revaluation and analyzed the optimal timing for implementing revaluation from a tax-saving perspective. In addition, the economic variables that affect the magnitude of tax savings from asset revaluation were identified. First, this study demonstrated that the simple intuition that asset revaluation always yields tax-saving effects is incorrect. However, when the implementation of asset revaluation does accompany tax-saving effects, the optimal revaluation timing is generally when the value of the relevant asset has risen sufficiently and no further significant appreciation is expected. This implies that if a firm conducts revaluation motivated by tax savings, it will voluntarily defer the revaluation until after the asset value has substantially increased. This, in turn, means that the somewhat arbitrary legal requirement of "a 25% or greater increase in the wholesale price index" is rendered unnecessary. One of the criticisms of the revaluation system is that it links revaluation conditions to the wholesale price index, which is entirely unrelated to the intrinsic appreciation of the relevant asset. Therefore, the findings of this study can be used as a basis for eliminating the irrational revaluation requirement of "a 25% or greater increase in the wholesale price index." Meanwhile, the effects of economic variables related to the magnitude of revaluation tax savings can be summarized as follows. If the firm's cost of capital is below or above a certain level, the revaluation tax savings become negative, making it advantageous not to conduct revaluation. When tax savings are positive, they increase as the cost of capital rises, but once the cost of capital exceeds a certain threshold, tax savings actually decrease. Tax savings increase as the original useful life and the remaining useful life at the time of revaluation are shorter, and as the rate of asset appreciation is lower. Conversely, the longer the holding period after revaluation, the higher the corporate tax rate, and the larger the revaluation surplus, the greater the tax savings. If one assumes that larger tax savings correspond to stronger motivation for revaluation, the above findings will aid in understanding firms' decisions to implement asset revaluation.