According to my country’s tax laws, different fixed assets have different depreciation periods. For example, the depreciation life of general fixed assets such as houses, machinery and equipment, and office furniture is 20 years, while the depreciation life of special fixed assets such as electronic equipment and vehicles can be shortened to 5 or 3 years.
According to the provisions of my country's "Enterprise Income Tax Law of the People's Republic of China", enterprises can deduct the depreciation of fixed assets as costs when calculating income tax. The depreciation life of a fixed asset refers to the number of years from the date of purchase of the fixed asset until the enterprise can no longer use the asset. The depreciation life of different types of fixed assets is different. According to my country's tax law, the general depreciation life of fixed assets is 20 years, such as houses, machinery and equipment, and office furniture. However, for special fixed assets, the depreciation life can be shortened. For example, the depreciation life of special fixed assets such as electronic equipment and vehicles can be shortened to 5 years or 3 years. When an enterprise calculates the depreciation of fixed assets, there are two depreciation methods: straight-line method and accelerated depreciation method. The straight-line method means that the original value of fixed assets is evenly distributed and the depreciation expenses are calculated in the same way every year; the accelerated depreciation method is to use a higher depreciation amount in the first few years, and then gradually reduce the calculated depreciation expenses, thereby shortening the depreciation life of the asset.
What is the relationship between the depreciation rate of fixed assets and the depreciation life? Fixed asset depreciation rate and depreciation life are closely related concepts. The depreciation rate is the ratio of depreciation per unit time to the book value of fixed assets calculated by an enterprise in a certain way, while the depreciation life refers to the service life of fixed assets. Generally speaking, the shorter the depreciation period, the higher the depreciation rate, and vice versa. Enterprises choose the balance between the benefits and costs of depreciation based on their actual circumstances.
In the process of business operations, fixed assets are an indispensable and important component, and they also have an important impact on corporate tax and financial management. Enterprises should choose the appropriate depreciation life and depreciation method of fixed assets based on actual conditions to minimize costs while meeting production and operation needs.
Legal basis:
Article 43 of the "Enterprise Income Tax Law of the People's Republic of China" The original value of the asset is recognized as cost by calculating depreciation expenses in accordance with the depreciation life and depreciation methods stipulated by the state.