I. Residual value rate of fixed assets:
1. Domestic enterprises
Article 31 of the Provisional Regulations and Implementing Rules for the Enterprise Income Tax of the People's Republic of China: The residual value rate is within 5% of the original price, which is to be determined by the enterprises themselves. According to the "State Administration of Taxation on the abolition of the enterprise income tax approval 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%.
2. Foreign-funded enterprises
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-funded enterprises is generally 10%.
II. Depreciation Life:
Under the new Enterprise Income Tax Law, the amortization life limitations are as follows:
Unless otherwise specified, the minimum years for depreciation of fixed assets are as follows:
(1) 20 years for buildings and constructions;
(2) 10 years for airplanes, trains, ships, machines, machineries, and other production equipments;
(3) 5 years for appliances, tools and furniture related to production and business;
(4) 4 years for means of transportation other than airplanes, trains and ships;
(5) 3 years for electronic equipment.
Expanded Information:
Fixed Assets depreciated on a straight-line basis:
I, Calculation method:
Without taking into account the provision for impairment, the formula is as follows:
Annual depreciation rate of fixed assets=(1-estimated net salvage rate)/estimated useful life (in years)
Monthly depreciation rate of fixed assets=Annual depreciation rate/12
Monthly depreciation of fixed assets=original value of fixed assets*monthly depreciation rate?
Two cases:
Case 1: Guanhua Institute of Electronic Science and Technology purchased a new Red Flag for 1 million yuan, which is scheduled to be used for 10 years with a net salvage rate of 5%. What is the annual depreciation rate of this equipment according to accounting standards and related regulations?
According to the formula annual depreciation rate of fixed assets = (1 - estimated net salvage rate)/estimated useful life (years) = (1 - 5%)/10×100% = 9.5%
Case 2: Guanhua Institute of Electronic Science and Technology purchased a tower crane at a cost of RMB 120,000 yuan, which is scheduled to be used for 10 years, with a net salvage rate of 5%, and depreciated according to the accounting standards of the enterprise and the relevant provisions by the straight-line method of depreciation, the tower crane in the third year of depreciation?
According to the formula: annual depreciation rate = (1-5%)/10 × 100% = 9.5% depreciation in the third year = 120,000 × 9.5% = 11,400 yuan
Reference: Residual Value Ratio of Fixed Assets_Baidu Encyclopedia Straight Line Depreciation_Baidu Encyclopedia