Residual Value Rate of Fixed AssetsLatest Provisions:
The net residual value rate of fixed assets does not have a specific numerical value, and the residual value rate of fixed assets for domestic enterprises in general was 5% on the old accounting standards before, and now according to Article 59 of Regulations for Implementing the Law of the People's Republic of China on Enterprise Income Tax, enterprises should reasonably determine the estimated net residual value of fixed assets based on the nature and use of fixed assets. Now, according to Article 59 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China, enterprises should reasonably determine the estimated net residual value of fixed assets according to the nature and use of fixed assets. Once the estimated net residual value of fixed assets is determined, it shall not be changed.
Depreciable Life
According to the new Enterprise Income Tax Law, amortization is limited to the minimum number of years for depreciation of fixed assets, unless otherwise specified.
(1) 20 years for houses and buildings.
(2) 10 years for airplanes, trains, ships, machines, machinery and other production equipment.
(3) 5 years for apparatus, tools and furniture related to production and business.
(4) 4 years for means of transportation other than airplanes, trains and ships.