Legal analysis: Generally speaking, there are the following points for early scrapping of fixed assets:
1. Due to technological progress and other reasons, machinery and equipment are updated, and old equipment cannot adapt to new production needs. , and has no transfer value.
2. Fixed assets are damaged due to accidents, etc.
3. The estimated useful life when originally recorded was too long, causing the fixed assets to be scrapped early.
4. Affected by natural disasters, etc., fixed assets will be scrapped in advance.
5. Factory demolition, the original machinery and equipment are fixed on the ground and cannot be moved.
For scrapped or damaged fixed assets, the balance after deducting the residual value, insurance compensation and liability compensation from the net book value shall be based on the following evidence
(1) Relevant departments within the enterprise Appraisal certificate issued;
(2) For fixed assets that are scrapped or damaged individually or in batches with a large amount, the enterprise shall make special explanations item by item, and entrust an institution with technical appraisal qualifications to conduct appraisal and issue appraisal instructions ;
(3) If fixed assets are damaged or scrapped due to force majeure (natural disasters, accidents, wars, etc.), there should be an appraisal report issued by the relevant functional department, such as a disaster certificate issued by the fire department, a disaster certificate issued by the public security department, Issued accident scene handling reports, vehicle damage reports, house demolition certificates from the housing management department, inspection reports from the security inspection departments such as boilers and elevators, etc.;
(4) Description of scrapping and damage to the company’s fixed assets and internal Approval documents;
(5) If insurance claims are involved, there should be an explanation of the claims settlement by the insurance company.
Legal basis: "Announcement of the State Administration of Taxation on Issuing the "Administrative Measures for Pre-tax Deduction of Enterprise Asset Losses for Income Taxes" Article 5: Asset losses incurred by enterprises shall be reported to the competent tax authorities in accordance with prescribed procedures and requirements. It can be deducted before tax after filing the declaration. Undeclared losses are not deductible for tax purposes. Article 9 The following asset losses shall be reported and deducted to the tax authorities in the form of a list declaration:
(1) Losses arising from the sale, transfer, and sale of non-monetary assets at fair prices during the normal operation and management activities of the enterprise. ;
(2) Normal wear and tear of the enterprise's various inventories;
(3) Losses caused by normal scrapping and liquidation of the enterprise's fixed assets that have reached or exceeded their useful life;
< p>(4) Asset losses caused by normal death due to the enterprise’s productive biological assets reaching or exceeding their useful life;(5) Enterprises buying and selling bonds through various trading venues, markets, etc. in accordance with the principle of fair market transactions , stocks, futures, funds and financial derivatives, etc. losses.