Unless otherwise stipulated by the competent financial and taxation authorities of the State Council, the minimum number of years for calculating depreciation of fixed assets is as follows:
(i) for houses and buildings, 20 years;
(ii) for airplanes, trains, ships, machinery, machines and other production equipment, 10 years;
(iii) for utensils, implements, furniture and so forth related to production and business activities, 5 years;
(iv) for means of transportation other than airplanes, trains and ships, 4 years; and for 5 years;
(iv) means of transportation other than airplanes, trains and ships, for 4 years;
(v) electronic equipment, for 3 years.
Specifically, it can be understood in the following ways.
(i) The minimum depreciable life of houses and buildings is 20 years.
Houses and buildings as the most important fixed assets, its structure, properties Bison and other aspects of the relatively special, relatively long service life, relatively high value, the value of its use is also a relatively long process, according to the principle of matching income and expenditure and other requirements, its depreciation should be relatively long, so this article provides that the minimum depreciation of houses and buildings for 20 years. This basically reflects the reality of the use of houses and buildings. This article refers to the houses, buildings, refers to the production, business use and employee life, welfare services, houses, buildings and their ancillary facilities, including houses, including factories, business premises, office absolute defense common room, warehouse, accommodation, canteen and other houses; buildings, including towers, pools, tanks, wells, racks, sheds (excluding temporary sheds, carports and other improvised facilities), fields, roads, bridges, platforms, Piers, docks, culverts, gas stations, as well as independent of the house and machinery and equipment outside the pipeline, chimneys, fences, etc.; houses, buildings and ancillary facilities, refers to the houses, buildings and inseparable, not calculated separately the value of the ancillary facilities, including houses, buildings, gas, water, oil pipelines, communications, transmission lines, elevators, sanitation, etc..
(ii) For airplanes, trains, ships, machines, machinery and other production equipment, the minimum depreciation period is 10 years.
Aircraft, trains, ships as a means of transportation, compared with other means of transportation, its performance is stronger, higher value, the use of a relatively long period of time, the depreciation of a correspondingly long period of time; machinery, machinery and other production equipment, etc., but also has a longer life and other characteristics, depreciation of a relatively long period of time should also be. Therefore, the provisions of this article, the minimum depreciable life of such fixed assets for 10 years, including trains, including a variety of locomotives, buses, wagons, as well as the value of the car is not calculated separately on the ancillary facilities; ships, including a variety of motorized ships, as well as the value of the ship's ancillary facilities are not calculated separately; machinery, machinery and other production equipment, including a variety of machines, machines, units, production lines and their ancillary equipment, a variety of power, transportation, conduction equipment, and so on. and conduction equipment, etc.
(c) Appliances, tools, furniture, etc., related to production and business activities, the minimum depreciation period is five years.
This type of fixed assets, is in addition to machinery, machines and other production equipment, but related to production and business activities, that is, not a direct means of production, but in the process of production and business operations to play a supporting role in the appliances, tools, furniture, etc., their useful life is relatively short, the minimum depreciation of its life of 5 years.
(iv) Means of transportation other than aircraft, trains and ships, the minimum depreciable life is 4 years.
In addition to airplanes, trains, ships, other means of transportation, relatively low value, shorter useful life, its depreciable life should be correspondingly shorter, so the provisions of this article, the minimum depreciable life of such fixed assets for 4 years. Such fixed assets include automobiles, trams, tractors, motorcycles (boats), sailboats, sailboats and other means of transportation.
(v) Electronic equipment, the minimum depreciable life is 3 years.
The original foreign tax law implementing regulations, the minimum depreciation of electronic equipment for 5 years, taking into account the rapid changes in science and technology, technological upgrading faster, the relative shortening of the useful life of electronic equipment and other factors of reality, this article will be the minimum depreciation of electronic equipment from 5 years to 3 years, so that the number of enterprises depreciation and lack of depreciation deductions forward. The electronic equipment referred to in this article, refers to the integrated circuits, transistors, tubes and other electronic components, the application of electronic technology (including software) to play a role in the equipment, including electronic computers and robots controlled by electronic computers, numerical control or program-controlled systems.
(vi) the autonomy of the enterprise in determining the depreciable life.
The depreciable life of the foregoing provisions, only the minimum depreciable life of each fixed asset, is only a basic requirement, it does not preclude the enterprise itself to provide for the asset to adopt a longer depreciation time limit than the minimum depreciable life. That is to say, the enterprise may, according to the attributes and use of fixed assets, depreciate them in a longer time limit than the minimum depreciable life of the relevant assets stipulated in this article.
(vii) The power of the competent financial and taxation authorities of the State Council to prescribe depreciation years.
The competent financial and tax authorities of the State Council may make provisions for minimum depreciable lives different from those provided for in this Article. Because the reality is very complex, the properties of various fixed assets, the use of the situation will change, if not authorized by the state council department in charge of finance and taxation according to the needs of the actual situation and the power to adjust the time, it is easy to cause rigid, mechanical, difficult to adapt to the needs of practice. Therefore, according to the authorization of this article, can be without amending the regulations, the state council department in charge of finance and taxation may make different from the principle of this article to determine the minimum depreciation of various assets.
Legal Basis:
Enterprise Income Tax Law
Article 60:
Except as otherwise provided by the competent departments of finance and taxation under the State Council, the minimum number of years for the calculation of depreciation of fixed assets shall be as follows:
(1) for houses and buildings, 20 years;
(2) for Aircraft, trains, ships, machines, machinery and other production equipment, for 10 years;
(iii) apparatus, tools, furniture, etc., related to production and business activities, for 5 years;
(iv) means of transportation other than aircraft, trains and ships, for 4 years;
(v) electronic equipment, for 3 years.