According to the Circular of the State Administration of Taxation on Clarifying the Implementation Time for Enterprises to Adjust the Proportion of Residual Value of Fixed Assets [State Taxation Letter (2005) No. 883], the residual value of fixed assets is uniformly determined as 5%.
At the same time, the new income tax law provides that there is a provision that reads: means of transportation other than airplanes, trains and ships, for four years.
So the depreciable life of a car is 4 years and the net salvage value is 5%.