Article 60 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that: Unless otherwise provided by the competent departments of finance and taxation of the State Council, the minimum number of years for calculating depreciation of fixed assets shall be as follows:
(1) 20 years for houses and buildings;
(2) 10 years for airplanes, trains, ships, machines, machineries, and other production equipment;
(3) 5 years for apparatus, tools, and furniture related to production and business activities;
(5) 5 years for appliances, tools, and furniture related to production and business activities;
(iii) apparatus, tools, furniture, etc., related to production and business activities, 5 years;
(iv) means of transportation other than airplanes, trains and ships, 4 years;
(v) electronic equipment, 3 years.
Fixed asset depreciation methods:
1.? Annual average method (also known as straight-line method)
Annual depreciation rate = (1 - estimated net salvage rate) ÷ Estimated useful life (in years) × 100%Monthly depreciation = Original cost of fixed assets × Annual depreciation rate ÷ 12
2, ? Workload method
Unit workload depreciation = fixed assets original cost × ( 1 - estimated net salvage rate ) / estimated total workload of a fixed asset monthly depreciation = the fixed asset workload in the month × unit workload depreciation
3,? Double Declining Balance Method (Accelerated Depreciation Method)
Annual Depreciation Rate = 2 ÷ Estimated Useful Life (Years) × 100%Monthly Depreciation = Net Fixed Asset Value × Annual Depreciation Rate ÷ 12
4,? The total number of years law (accelerated depreciation method)
Annual depreciation rate = remaining useful life / estimated useful life of the total number of years × 100 % monthly depreciation amount = (fixed assets original price - estimated net salvage value ) × annual depreciation rate ÷ 12
General enterprises use more is the straight-line method. Depreciation can be charged individually or categorically.
Note