2. The formula for calculating net salvage: net salvage value of fixed assets = original value of fixed assets × estimated residual value rate.
3, net residual value of fixed assets = estimated residual value recoverable when fixed assets are scrapped - estimated estimated disposal costs. The estimated net residual value of a consolidated business is 5%. The depreciable life of a transportation company's transportation vehicles is at least 4 years.
4. Unless otherwise specified by the competent authorities of the Ministry of Finance of the State Council, the minimum period for the calculation of depreciation of fixed assets is as follows: houses and buildings 20 years; aircraft, trains, ships, machinery, machinery and other production equipment 10 years; 5 years for production and commercial activities of electrical appliances, tools and furniture; 4 years for modes of transportation other than aircraft, trains and ships; electronic equipment, 3 years.
I. Net residual value is the residual value minus the fixed assets payable after the expiration of the useful life of fixed assets payable fixed assets liquidation costs. The net residual value of a fixed asset is the non-transferable value of the fixed asset and should not be included in costs and expenses. Depreciation of fixed assets is calculated using an estimated method, which is deducted from the original value of the fixed assets and restored directly upon retirement of the fixed assets. The ratio of the net residual value of fixed assets to the original value of fixed assets usually ranges between 3% and 5%.
Basic provisions on the rate of residual value of fixed assets
1. Domestic enterprises
Article 32 of the People's Republic of China *** and the State Temporary Provisions of the Enterprise Income Tax and the implementation of the rules of the provision: the ratio of the residual value of the original value of 5% or less shall be determined by the enterprise itself. According to the State Administration of Taxation on the abolition of the follow-up management of enterprise income tax approval program notice of Article 2 (Guo Shui FA [2003] No. 70), the proportion of the residual value of fixed assets even 5% .
2. Foreign-funded Enterprises
According to Article 33 of the Detailed Rules on the Implementation of the Law on Enterprise Income Tax for Foreign Invested and Foreign Enterprises, the rate of residual value of fixed assets for foreign-funded enterprises is generally 10%.
Depreciable Life of Fixed Assets
Under the new CIT Law, the amortization period is limited as follows:
Unless otherwise specified, the minimum period for depreciation of fixed assets is as follows:
(1) The estimated useful life of houses and buildings is 20 years;
(2) The expected service life is 10 years;
(3) the estimated service life of production and operating tools, electrical appliances and furniture is 5 years;
(4) the estimated service life of means of transportation other than trains and ships is 4 years;
(5) the estimated service life of electronic equipment is 3 years.