1, fixed assets depreciation period, residual value depreciation method shall not be arbitrarily changed once determined.
2. The minimum years for calculating depreciation on fixed assets are as follows:
(i) houses and buildings, 20 years;
(ii) airplanes, trains, ships, machines, machineries, and other production equipments, 10 years;
(iii) appliances, tools, and furnishings 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.
3. Net residual value, enterprises can determine their own, the tax law does not rigidly specify a standard.
4, on the depreciation method, the general use of straight-line method, due to technological advances and other reasons, the need to accelerate depreciation, you can shorten the depreciation period or take accelerated depreciation method. Take to shorten the depreciable life method, the minimum depreciable life shall not be less than 60% of the specified depreciable life; accelerated depreciation method, you can take the double-declining-balance method or sum-of-the-years method.
5, the following fixed assets since January 1, 2014, the implementation of the "Ministry of Finance, State Administration of Taxation on Improving the Accelerated Depreciation of Fixed Assets Enterprise Income Tax Policy Notice" Cai Shui [2014] No. 75:
6, on the manufacturing of biological pharmaceuticals, the manufacturing of special-purpose equipment, the manufacturing of railroads, ships, aerospace and other transportation equipment, the manufacturing of computers, communications and other Electronic Equipment Manufacturing, Instrument and Meter Manufacturing, and Information Transmission, Software and Information Technology Service Industry and other 6 industries, the fixed assets newly purchased by enterprises after January 1, 2014, can shorten the depreciation life or adopt the method of accelerated depreciation.
The small and micro-profit enterprises in the above six industries can shorten the depreciation period or adopt the method of accelerated depreciation for the instruments and equipment used for R&D and production and operation*** newly purchased after January 1, 2014, the unit value of which is not more than 1 million yuan, which is allowed to be deducted at one time when calculating the taxable income, and will not be further depreciated over the years; the unit value of which is more than 1 million yuan can be depreciated over a shorter period or adopt the method of accelerated depreciation. The method of accelerated depreciation can be shortened or adopted.
For newly purchased instruments and equipments used exclusively for research and development by enterprises in all industries after January 1, 2014, if the value of the unit does not exceed 1 million yuan, it is allowed to be deducted as a one-time lump sum in the calculation of taxable income, and will not be depreciated over several years; for the value of the unit that exceeds 1 million yuan, it is allowed to shorten the depreciation life or adopt accelerated depreciation methods.
Fixed assets held by enterprises in all industries with a unit value of not more than 5,000 yuan are allowed to be deducted as a lump sum in the calculation of taxable income by adding them to the current costs and expenses, and depreciation will no longer be calculated over several years.
Fixed assets and intangible assets, which are used to produce products, also have a cost. Its value, which is his cost, needs to be included in the cost of the product. It needs to be amortized. This is why fixed assets are depreciated.?
But, according to the accrual principle, the period over which his cost is amortized should not be just one year, but the period over which he will use it. Therefore a reasonable estimate of the cost to be amortized over each period is needed, which is the amount of depreciation and amortization per year. If all amortization is done directly at the time of purchase, the cost will be very high in the current year and the profit will be reduced, while the profit will be overestimated in the subsequent years. This is all disallowed by accounting.
One of the main characteristics of fixed assets is the ability to function continuously in a number of production cycles and maintain its original physical form, while its value is gradually transferred to the products produced with the wear and tear of the fixed assets, this part of the value of the fixed assets transferred to the products, is fixed asset depreciation.
The source of the idea of depreciation of fixed assets
For the enterprise, there is a simple formula, income - expenditure = profit, fixed assets are actually also the enterprise spend money to buy, so it is also a kind of expenditure, but often the amount of this expenditure is very large, and the benefit of a very long period of time, if this expenditure is a one-time accounted for in a particular month, will lead to the month of the obvious loss, and in fact, the same month from the fixed assets to benefit will not be so much. Fixed assets will not get so much benefit, at the same time, the other benefit of the month, and does not reflect the due expenditure, so the fixed assets will be recorded, the average of its expenditure in the benefit period, monthly expenses.
Fixed assets depreciation note
1. Note the scope of depreciation, according to the current accounting standards, in addition to the following cases, the enterprise should be depreciated on all fixed assets:
a. Has been fully depreciated still continue to use fixed assets;
b. In accordance with the provisions of the separate valuation of the land as a fixed asset accounted for;
c. Fixed assets in the process of upgrading. Depreciation is also provided for unused machinery and equipment, instruments, transportation, tools and appliances, and seasonal decommissioning.
2. Note that the re-accrual of fixed assets this is to be considered in the provision for impairment of fixed assets.
3. Note that the depreciation period across the year when the annual depreciation amount is determined.
When to depreciate fixed assets
The size of the depreciation of fixed assets by the depreciation base, net salvage value, depreciable life, depreciation method and other factors, the "Accounting Standards for Enterprises" (referred to as the standards) and the "People's Republic of China *** and the State Enterprise Income Tax Law" and its implementing regulations (referred to as the tax law), respectively, the extraction of depreciation of fixed assets made the corresponding provisions. Only by grasping the old fixed asset depreciation factors, in order to ensure that the depreciation amount is correct, the tax will not be affected. Now on the impact of fixed assets depreciation of the factors from the standard, tax law for comparison.
Comprehensive grasp of the factors affecting the depreciation of fixed assets, can ensure that the depreciation of the correct amount, but enterprises in the actual production and operation, will encounter some exceptions, now from the following cases to explain how to depreciate.? [4]?
Depreciation of fixed assets
Accounting standards, has reached the intended use of the state but not yet for the completion of the final accounts of fixed assets, should be in accordance with the estimated value of its cost, and depreciation; to be for the completion of the final accounts, and then adjusted according to the actual cost of the original tentative value, but does not need to be adjusted to the original depreciation amount has been accrued.
And "Notice of the Ministry of Finance and State Administration of Taxation on the Relevant Enterprise Income Tax Issues of Telecommunications Enterprises" (Cai Shui [2004] No. 215) stipulates that telecommunication enterprises shall adjust the value of fixed assets due to the adjustment of the original provisional value according to the actual finalized value of the completion of the project or the discovery of the original valuation of the error and other reasons, and make up for the understated depreciation of the previous years in accordance with the provisions of the regulations, and are not permitted to deduct the depreciation of the year of making up for the year of making up for the year of making up for the year of making up for the year of depreciation. The taxable income of the original year should be adjusted accordingly, and the corresponding excess tax paid can be offset against the income tax payable in subsequent years.
In other words, the tax law requires that the value of fixed assets be adjusted according to the actual value after the value is determined, and the depreciation under (over) depreciation in previous years should be adjusted accordingly.
Accrual of depreciation after asset impairment
The market value of fixed assets in the production and operation in the current period has fallen significantly, the decline is significantly higher than the expected decline due to the passage of time or normal use and the market interest rates or other market rates of return on investment in the current period has declined, resulting in a substantial decrease in the recoverable amount of fixed assets, according to the provisions of the standard, the above situation should be judged to be Fixed assets are impaired and provision for impairment of fixed assets should be made.
Fixed assets should be treated in accordance with the change in accounting estimate, i.e., depreciated according to the future applicable method. And the tax law provides in accordance with the accounting standards of fixed asset impairment provision in the occurrence of substantial damage before the deduction shall not be adjusted to the tax basis of the asset, the future accounting depreciation is less than the depreciation of the tax law should be adjusted accordingly to reduce the amount of taxable income. [4]?
Depreciation accrual after net salvage value adjustment
The projections of depreciable life and net salvage value of fixed assets are only estimates, and thus carry a great deal of inaccuracy, and sometimes the deviation can be significant. According to the standard, enterprises should review and adjust the useful life, estimated net residual value and depreciation method of fixed assets at least at the end of each year.
The accounting estimates adopted after the amendment are more reasonable than those before the amendment and more accurately reflect the financial position and operating results of the enterprise. Therefore, the enterprise should adjust the depreciable life and net residual value of fixed assets and depreciate fixed assets according to the future applicable method. However, according to the provisions of the tax law, once the estimated net residual value of fixed assets is determined, it shall not be changed, and the depreciable life can not be lower than the minimum depreciable life under the tax law.
Accrual of depreciation after asset appraisal
According to the Circular of the Ministry of Finance and the State Administration of Taxation on the Issues of Income Tax Treatment Related to the Appraisal of Value-added Assets of Enterprises (Cai Shui Zi [1997] No. 077) and the Supplementary Circular of the Ministry of Finance and the State Administration of Taxation on the Issues of Income Tax Treatment Related to the Appraisal of Value-added Assets of Enterprises (Cai Shui Zi [1998] No. 050), it is provided that It is stipulated that the value-added of asset appraisal incurred by an enterprise undergoing shareholding reform shall be adjusted in the accounts accordingly, and the value-added of fixed asset appraisal incurred may be depreciated, but shall not be deducted when calculating the taxable income. Enterprises should attach the relevant calculation information to the competent tax authorities for examination and approval when they apply for annual tax declaration.
When calculating the annual taxable income for the reporting year, it can be adjusted according to the following methods:
①Adjustment according to the facts year by year. For the asset appraisal value added by the enterprise due to shareholding reform, the actual amount of depreciation, amortization, etc. actually included in the current cost and expense in each taxable year shall be adjusted in the cost and expense items in the annual tax declaration, and the taxable income for the current period shall be adjusted accordingly.
②Comprehensive adjustment. Appraisal of assets, regardless of asset items, the amount of appreciation in the subsequent year's tax returns, costs, expenses to be adjusted, the corresponding increase in taxable income for each tax year, the maximum period of adjustment shall not exceed ten years. Therefore, the depreciation of the asset valuation is not allowed to be deducted before tax.
Enterprise depreciation of fixed assets
According to the "Reply of the State Administration of Taxation on the Determination of Depreciable Life of Fixed Assets" (Guo Shui Han [2003] No. 1095), the fixed assets acquired by the enterprise which have already been used should be depreciated on the basis of appropriate evidence (including old and new, wear and tear, use, and whether or not they are old or new). The degree of depreciation should be determined on the basis of appropriate evidence (including factors such as the degree of wear and tear, the use of the asset, and whether or not improvements have been made), and then multiplied by the minimum depreciable life under the tax law to determine the estimated minimum depreciable life of the fixed asset.
That is to say, the enterprise acquires the old fixed assets that have been used, generally can determine the depreciable life according to its remaining useful life, which can be reasonably determined according to the degree of wear and tear of the assets, the use of the condition. Even if the acquired fixed assets have been fully depreciated in the original enterprise, they can still be depreciated over their useful lives according to the new tax basis.
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