Legal analysis: enterprises should consider the following factors when estimating the useful life of fixed assets:
(1) the expected production capacity or physical production of that fixed asset.
(2) The tangible wear and tear of the fixed asset, such as due to wear and tear in the use of equipment, natural erosion of buildings and buildings, and so on.
(3) Intangible loss of the fixed asset, such as the technological level of the existing asset is relatively obsolete due to the advancement of new technology, changes in market demand to make the stool sedan chair he product obsolete, etc.. (4) Legal or similar restrictions on the use of fixed assets.
According to the new Enterprise Income Tax Law of Zao Pai, the depreciation life of fixed assets is stipulated as follows:
Article 60: Except as otherwise provided by the competent departments of the State Council in charge of finance and taxation, the minimum number of years for the calculation of depreciation of fixed assets is as follows:
(1) Houses, buildings, 20 years (2) Airplanes, trains, ships, machines, machinery and other production equipment, 10 years (3) Apparatus, tools, furniture, etc. related to production and business activities, for 5 years (iv) Means of transportation other than airplanes, trains and ships, for 4 years (v) Electronic equipment, for 3 years. Fixed Asset Residual Value Rate Provisions
Article 31 of the Provisional Regulations and Implementing Rules for Enterprise Income Tax of the People's Republic of China*** and the People's Republic of China: The percentage of residual value shall be within 5% of the original price, which shall be determined by the enterprises themselves. According to the "State Administration of Taxation on the abolition of the enterprise income tax examination and approval of the project on the follow-up management of the notice" (Guo Shui Fa [2003] No. 70) the provisions of the second article of the fixed assets residual value of a uniform proportion of 5%.
According to Article 33 of the Rules for the Implementation of the Income Tax Law for Foreign Invested Enterprises and Foreign Enterprises, the residual value ratio of fixed assets for foreign enterprises is generally 10%. Article 59 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China*** and the State Sail (State Council Decree No. 512 of 2007), depreciation of fixed assets calculated in accordance with the straight-line method is allowed to be deducted. Enterprises shall calculate depreciation from the month following the month in which the fixed assets are put into use; fixed assets that have ceased to be used shall cease to be depreciated from the month following the month in which they have ceased to be used. Enterprises should be based on the nature and use of fixed assets, a reasonable determination of the estimated net residual value of fixed assets. Once determined, the estimated net residual value of fixed assets shall not be changed.
Legal basis: "The People's Republic of China *** and the State Enterprise Income Tax Law" Article 32 of the enterprise's fixed assets due to technological advances and other reasons, the need to accelerate depreciation, you can shorten the depreciation period or take the accelerated depreciation method. It can be seen that the new tax law is no longer on the rate of the residual value of fixed assets to make mandatory provisions for the rate of the rate of the residual value of fixed assets to determine the right to the enterprise, but emphasize a reasonable, requiring the production and operation of enterprises and the nature and use of fixed assets, reasonable determination of the estimated net residual value of fixed assets.