Article 60 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that unless otherwise provided by the competent departments of finance and taxation of the State Council, the minimum number of years for calculating depreciation of fixed assets shall be as follows:
(1) for houses and buildings, 20 years;
(2) for airplanes, trains, ships, machines, machinery and other production equipment, 10 years;
(3) for utensils, tools and furniture related to production and business activities, 5 years;
All the new provisions on the depreciation period are as follows.
(iii) apparatus, tools, furniture, etc., related to production and business activities, 5 years;
(iv) means of transportation other than airplanes, trains and ships, 4 years;
(v) electronic equipment, 3 years.
How are the depreciable life and net residual value of automobiles regulated?
The depreciable life of automobiles is 4 years, and the percentage of net residual value is within 5% of the original price, which is determined by the enterprise itself.
Depreciation of fixed assets, dealt with in accordance with the following provisions:
(a) the following fixed assets should be depreciated:
1, buildings, buildings;
2, in-use machinery and equipment, transportation vehicles, appliances, tools;
3, seasonal out-of-service and overhaul of out-of-service machinery and equipment;
4, to operating leases Fixed assets leased out under operating leases;
5. Fixed assets leased under finance leases;
6. Other fixed assets subject to depreciation as stipulated by the Ministry of Finance.
(2) the following fixed assets, shall not be depreciated:
1, land;
2, buildings, buildings other than unused, unwanted and closed fixed assets;
3, leased under operating leases;
4, has been depreciated to continue to use fixed assets;
5, in accordance with the provisions of the fixed assets to extract maintenance costs;
5, in accordance with the provisions of the fixed assets shall be depreciated. Fixed assets that have been fully depreciated and continue to be used;
5. Fixed assets that have been depreciated in accordance with the regulations;
6. Fixed assets that have been expended in the cost of a one-time charge;
7. Fixed assets of bankruptcy and shut-down enterprises;
8. Other fixed assets that are not subject to depreciation, as stipulated by the Ministry of Finance.
Fixed assets scrapped in advance shall not be depreciated.
(C) the basis and method of depreciation
1, the taxpayer's fixed assets, should be depreciated from the month following the month of commissioning; fixed assets out of service, should be discontinued from the month following the month of discontinuing use, stop depreciation.
2, fixed assets in the calculation of depreciation, should be estimated residual value, deducted from the original cost of fixed assets, the residual value of the proportion of the original price of 5% or less, determined by the enterprise; due to special circumstances, the need to adjust the residual value of the proportion of the competent tax authorities should be reported to the record.
3, the depreciation of fixed assets and depreciation of the depreciation period, in accordance with relevant state regulations.