Generally, the net salvage rate is 5%, and the net salvage value can be derived directly from the original value of fixed assets * net salvage rate.
Fixed asset salvage rate is the depreciation of assets calculated in accordance with the straight-line method, is allowed to deduct. 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 31 of the Provisional Regulations and Implementing Rules for Enterprise Income Tax of the People's Republic of China*** and the People's Republic of China: The percentage of residual value is within 5% of the original price, which shall be determined by the enterprise itself. According to the "State Administration of Taxation on the abolition of the enterprise income tax approval project on the follow-up management of the notice" (Guo Shui Fa [2003] No. 70) the provisions of the second article of the fixed assets residual value of a uniform proportion of 5%.
Expanded Information:
The Rules for the Implementation of the Regulations of the Enterprise Income Tax Law stipulate:
1. According to Article 33 of the Rules for the Implementation of the Law on the Income Tax of Foreign Invested Enterprises and Foreign Enterprises, the rate of the salvage value of the fixed assets of the foreign-invested enterprises is generally 10%.
2. Article 59 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China (State Council Decree No. 512 of 2007) stipulates that depreciation of fixed assets calculated in accordance with the straight-line method is allowed to be deducted.
3. 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.
4, enterprises should be based on the nature of fixed assets and the 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.
5. Article 32 of the Law of the People's Republic of China on Enterprise Income Tax (Decree of the President of the People's Republic of China No. 63 of 2007) stipulates that an enterprise's fixed assets may be depreciated over a shorter period of time or in a more accelerated manner if accelerated depreciation is required due to technological advancement or other reasons.
6, the new tax law no longer on the rate of residual value of fixed assets to make mandatory provisions for the rate of the rate of residual value of fixed assets to the right to determine the rate of fixed assets to the enterprise, but emphasize the reasonableness of a requirement for the production and operation of the enterprise and the nature of the fixed assets and the use of fixed assets, and to reasonably determine the net residual value of the estimated fixed assets.
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