How to make up the difference between old and new fixed assets and pay taxes?

Accounting treatment and tax payment of the difference between old and new fixed assets: the difference between old and new fixed assets should be recognized as the cost of fixed assets, that is, it should be included in the fixed assets account and confirmed in the balance sheet. The difference between the value of old assets and the value of new assets should be recognized as the appreciation of fixed assets and the cost of fixed assets.

In terms of tax payment, according to the enterprise income tax law and the value-added tax law, the replacement of fixed assets with new ones involves the treatment of enterprise income tax and value-added tax. Enterprises shall, in accordance with the provisions of the tax law, declare the value-added part of the fixed assets to make up the difference, and pay the corresponding enterprise income tax and value-added tax. At the same time, it should be noted that for the impairment loss of old assets and the value-added part of new assets, reasonable tax treatment is also needed to ensure the accuracy and compliance of tax returns.

The renewal of fixed assets involves the accounting and tax treatment of exchanging old assets for new ones and making up the difference. When updating fixed assets, enterprises can use preferential tax policies to minimize the tax burden. According to relevant laws and regulations, enterprises can reasonably extract depreciation by planning the time and method of renewal, and reduce the tax burden brought by the renewal of fixed assets. In addition, tax costs can be further optimized by combining other tax policies such as deduction and reduction. Therefore, when updating the fixed assets, enterprises should fully understand the tax policy, rationally plan the updating scheme, and maximize the tax benefits.

To sum up, the accounting and tax payment of the differences between the old and new fixed assets should comprehensively consider the accounting and tax provisions, so as to ensure that the accounting and tax declaration of assets can be handled reasonably under the premise of complying with relevant laws and regulations.

Legal basis:

Enterprise income tax law of People's Republic of China (PRC) (revised on 20 18).

Article 23

The income tax paid abroad by an enterprise on the following income may be deducted from its current taxable amount, and the credit limit is the taxable amount calculated in accordance with the provisions of this Law; The part exceeding the credit limit can be offset by the balance after deducting the tax payable in the current year with the annual credit limit in the next five years.