1. Houses and buildings, 20 years;
2. Airplanes, trains, ships, machines, machineries, and other production equipments, 10 years;
3. Apparatuses, tools, and furnishings related to production and business activities, 5 years;
5. Electronic equipments, 4 years;
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4. Means of transportation other than airplanes, trains and ships, 4 years;
5. Electronic equipment, 3 years.
Depreciable life is the number of years used to calculate depreciation of fixed assets. Fixed assets depreciable life, in a long time is in accordance with the physical durability, that is, according to the physical wear and tear and natural wear and tear of fixed assets can continue to use the time to determine; and then gradually began to follow the economic durability, that is, according to the fixed assets in this kind of life per unit of time such as years, months, the use of the lowest cost of determining depreciation; in recent years, but also gradually in accordance with the economic use of the years (i.e., including intangible losses, including all the impact on the use of fixed assets). In recent years, and gradually in accordance with the economic life (i.e., including intangible losses, including all factors affecting the use of fixed assets economic efficiency factors are taken into account to enable the use of fixed assets to maximize the economic benefits of the use of years) to determine the depreciable life.
Enterprises to shorten the depreciable life method, the acquisition of new fixed assets, the minimum depreciable life shall not be less than 60% of the depreciable life of Article 60 of the Implementing Regulations; if the acquisition of used fixed assets, the minimum depreciable life shall not be less than the Implementing Regulations, the minimum depreciable life minus has been used for 60% of the remaining years. Once the minimum depreciable life is determined, it may not be changed.
Legal Basis
Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China*** and of the State of China (Revised in 2019)
Article 59 Depreciation of fixed assets calculated in accordance with the straight-line method is allowed to be deducted.
Enterprises shall calculate depreciation from the month following the month in which the fixed assets are put into use; for fixed assets that have ceased to be used, depreciation shall cease to be calculated from the month following the month in which the fixed assets have ceased to be used.
Enterprises should be based on the nature and use of fixed assets, a reasonable determination of the estimated net residual value of fixed assets. Once determined, the estimated net residual value of fixed assets shall not be changed.
Article 60 Unless otherwise provided by the competent departments of finance and taxation under 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, machineries, and other production equipments, 10 years;
(3) for instruments, tools, furniture, etc., which are related to production and operation activities, 5 years; and and furniture, etc., for 5 years;
(iv) means of transportation other than aircraft, trains and ships, for 4 years;
(v) electronic equipment, for 3 years.
Notice of the State Administration of Taxation on Issues Relating to the Income Tax Treatment of Accelerated Depreciation of Fixed Assets of Enterprises
Article 3 If an enterprise adopts the method of shortening the depreciation life, the minimum depreciation life of new fixed assets acquired by the enterprise shall not be less than 60% of the depreciation life stipulated in Article 60 of the Implementing Regulations; in case of acquiring fixed assets that have already been utilized, the minimum depreciation life of such fixed assets shall not be less than the minimum depreciation life stipulated in the Implementing Regulations. In case of purchasing used fixed assets, the minimum depreciable life shall not be less than 60% of the remaining depreciable life after subtracting the used life from the minimum depreciable life stipulated in the Implementing Regulations. Once the minimum depreciable life is determined, it is generally not allowed to change.