Are there any hard and fast rules on depreciation/amortization years in tax law or accounting?
Article 60 Unless otherwise stipulated by the financial and tax authorities of the State Council, the minimum period for calculating depreciation of fixed assets is as follows:
(1) For houses and buildings, 20 years ;
(2) Airplanes, trains, ships, machines, machinery and other production equipment, for 10 years;
(3) Appliances, tools and furniture related to production and business activities etc., 5 years;
(4) Transportation vehicles other than airplanes, trains, and ships, 4 years;
(5) Electronic equipment, 3 years. Article 67 The amortization expenses of intangible assets calculated according to the straight-line method are allowed to be deducted.
The amortization period of intangible assets shall not be less than 10 years.
As an investment or transferred intangible asset, if the useful life is stipulated in relevant laws or contracts, it can be amortized in installments according to the stipulated or agreed useful life.
Expenditures for outsourced goodwill are allowed to be deducted when the entire enterprise is transferred or liquidated.
Article 68 The expenditures for renovation of fixed assets referred to in Items (1) and (2) of Article 13 of the Enterprise Income Tax Law refer to changes in the structure of houses or buildings and extension of their service life. expenditures incurred.
The expenditures stipulated in Item (1) of Article 13 of the Enterprise Income Tax Law shall be amortized in installments based on the estimated remaining useful life of the fixed assets; the expenditures stipulated in Item (2) shall be amortized in accordance with the remaining lease stipulated in the contract. Amortized over the term.
If the useful life of renovated fixed assets is extended, in addition to the provisions of Items (1) and (2) of Article 13 of the Enterprise Income Tax Law, the depreciation period shall be appropriately extended.
Article 69: The expenditure for major repairs of fixed assets referred to in Item (3) of Article 13 of the Enterprise Income Tax Law refers to expenditure that meets the following conditions at the same time:
( 1) The repair expenditure reaches more than 50% of the tax basis when the fixed asset is acquired;
(2) The useful life of the fixed asset after repair is extended by more than 2 years.
The expenditures specified in Item (3) of Article 13 of the Enterprise Income Tax Law shall be amortized in installments according to the remaining useful life of the fixed assets.
Article 70: Other expenditures that should be regarded as long-term deferred expenses as mentioned in Item (4) of Article 13 of the Enterprise Income Tax Law shall be amortized in installments starting from the month following the month in which the expenditure occurs. The term shall not be less than 3 years.
The above are the specific provisions of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China". It should be "hard", right? How does the tax law stipulate the amortization period of intangible assets?
The tax law has the following provisions on the amortization period of intangible assets:
Under normal circumstances, the amortization of intangible assets is generally not less than 10 years; under special circumstances, (1) For For software intangible assets approved by the agency, the minimum period can be 2 years: (2) If there is a legal provision or a contractually agreed service life, amortization shall be carried out according to the provisions or agreed years.
Legal basis:
Article 67 of the "Enterprise Income Tax Law Implementation Regulations" stipulates that the amortization expenses of intangible assets calculated according to the straight-line method are allowed to be deducted. The amortization period of intangible assets shall not be less than 10 years. As an investment or transferred intangible asset, if the useful life is stipulated in relevant laws or contracts, it may be amortized in installments according to the prescribed or agreed useful life. If the law does not stipulate the useful life, the amortization period shall be based on the beneficial life of the contract or the enterprise application; if the law and the contract or the enterprise application do not stipulate the useful life, or for self-developed intangible assets, the amortization period shall not be less than 10 years.
"Notice of the Ministry of Finance and the State Administration of Taxation on Certain Preferential Policies for Enterprise Income Tax" (Caishui [2008] No. 1) Article 1, Paragraph 5 stipulates: Enterprises and institutions purchase software that qualifies as fixed assets or If there are no recognition conditions for intangible assets, they can be accounted for as fixed assets or intangible assets. Upon approval by the competent tax authority, the depreciation or amortization period can be appropriately shortened to a minimum of 2 years. Does the new tax law for purchasing software stipulate a minimum amortization period?
The minimum amortization period is 10 years. With the approval of the tax bureau, it can be shortened appropriately, and the minimum amortization period can be 2 years.
1. Regarding the amortization life of intangible assets in Article 67 of the "Enterprise Income Tax Law Implementation Regulations" (State Council Order No. 512, 2007), paragraph 2 stipulates: "The amortization life of intangible assets Not less than 10 years." At the same time, the third paragraph stipulates: "As an investment or transferred intangible asset, if the relevant laws or contracts have a useful life, it can be amortized in installments according to the prescribed or agreed useful life."
2. The first article of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Preferential Policies for Enterprise Income Tax" (Caishui [2008] No. 1) provides for preferential policies to encourage the development of the software industry and integrated circuit industry. Software purchased by public institutions that meets the conditions for recognition of fixed assets or intangible assets can be accounted for as fixed assets or intangible assets. Upon approval by the competent tax authorities, the depreciation or amortization period can be appropriately shortened to a minimum of 2 years. What is the depreciation life of fixed assets specified in accounting? It is not a tax law requirement
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There are no special regulations in accounting. The company determines the depreciation period based on the asset situation
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Now I don’t know what the amortization period is. Are there any regulations in the tax law?
The old accounting standards of 2001 stipulated that intangible assets should be amortized evenly over the estimated useful life from the date of acquisition and included in the current profit and loss. If the estimated useful life exceeds the income period or the limited number of years stipulated in the relevant contract, the amortization period of the intangible asset shall be determined according to the following principles:
First, the contract stipulates the income period but the law does not stipulate the effective period. , the amortization period should not exceed the income period stipulated in the contract;
Second, if the contract does not stipulate the income period but the law stipulates the effective period, the amortization period should not exceed the effective period stipulated by the law;
Third, if the contract stipulates the income period and the law also stipulates the effective period, the amortization period should not exceed the shorter one;
Fourth, if the contract does not stipulate the income period , and if the law does not stipulate the effective period, the amortization period should not exceed 10 years.
This follows the prudence principle, but also limits the stability of intangible assets. These provisions are too general and difficult to adapt to the increasingly complex nature of intangible assets.
The 2006 new accounting standards stipulate that intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by an enterprise. Different provisions are made for the amortization methods of intangible assets of different natures:
First, for intangible assets with limited service life, the amortization amount should be systematically and reasonably amortized within the service life. An enterprise's amortization of intangible assets shall start from the time when the intangible assets are available for use until the time when they are no longer recognized as intangible assets. The amortization method of intangible assets selected by the enterprise should reflect the expected realization method of the economic benefits related to the intangible asset. If the expected realization method cannot be reliably determined, straight-line amortization shall be used.
Second, intangible assets with indefinite useful lives should not be amortized.
Enterprises should review the useful lives of intangible assets with uncertain useful lives in each accounting period. If there is evidence that the useful life of an intangible asset is limited, its useful life should be estimated and handled in accordance with the provisions of these standards.
2. Comparison of amortization methods between the old and new accounting standards
The old accounting standards in 2001 stipulated the amortization of intangible assets using the straight-line average method. According to the value of the intangible assets within a certain period The amortization period is the minimum period stipulated in the contract and law, and the amortization period shall not exceed 10 years if there is no provision in the contract or law. It amortizes all intangible assets equally based on the time of use, without taking into account the time value of different intangible assets.
The 2006 new accounting standards draw lessons from foreign amortization methods. They do not implement a "one size fits all" approach to straight-line amortization. Instead, they propose that "it should reflect the expected realization of the economic benefits related to the intangible asset." way" is more feasible. The standards make the objects of amortization clearer by dividing intangible assets into those with limited useful lives and those with unlimited useful lives. According to the new standard, if the expected realization method cannot be reliably determined, the straight-line amortization method should be used.
What are the specific provisions on depreciation (amortization) life?
The depreciation life of fixed assets can generally be determined according to specific circumstances, but it is necessary to pay attention to the minimum life regulations: Unless otherwise specified by the finance and tax authorities of the State Council, the minimum life for calculating depreciation of fixed assets is as follows: < /p>
(1) Houses and buildings, 20 years;
(2) Planes, trains, ships, machines, machinery and other production equipment, 10 years;
(3) Appliances, tools, furniture, etc. related to production and business activities, 5 years;
(4) Transportation tools other than airplanes, trains, and ships, 4 years;
(5) Electronic equipment, 3 years.
Generally speaking, the amortization of intangible assets is specifically recognized in accordance with the relevant provisions of standards or accounting systems. Certain intangible assets are acquired from contractual rights or other legal rights, and their useful life should not exceed the period of the contractual rights or other legal rights. However, if the expected period of use of the assets by the enterprise is shorter than the contractual rights or other legal rights, , the service life should be determined according to the period of expected use of the enterprise. What is the tax amortization period for mining rights?
For large and above, the mining license is valid for up to 30 years; for medium-sized ones, the mining license is valid for up to 20 years; for small ones, the mining license is valid for up to 10 years.
Meaning: Mining rights refer to a special legal right that allows legal persons, citizens or other organizations with corresponding qualifications to occupy, exploit and benefit from the mineral resources owned by the country within the scope permitted by law. The property rights are specifically clarified by the Mineral Resources Law [1] on the basis of the general provisions of the Property Law. The object of mining rights should include mineral resources and mining areas, which are complex, and the different types and sizes of mining areas and the mineral deposits they contain have an important impact on the acquisition and exercise of mining rights. Mining rights can be transferred with restrictions, and the law should clarify and improve the transfer forms of mining rights such as mortgage, leasing and contracting.
The mineral resources that collective mining enterprises and private mining enterprises can be approved to mine include:
Mineral deposits and mineral sites that are not suitable for the construction of large and medium-sized mines by the state;
With the consent of the state-owned mining enterprise and the approval of its superior administrative department, the marginal scattered minerals demarcated within the scope of its mining area;
After the mine is closed, it is confirmed by the original mining enterprise administrative department that it can be safely mined and Residual ore bodies that will not cause serious environmental consequences;
Other mineral resources that the state plans to mine.
Process: Application->Acceptance->Review->Registration->Approval