In the process of real life, we may have heard of the concept of "depreciation", many people will be confused. In fact, China's depreciation of fixed assets for the calculation of depreciation, mainly divided into tax depreciation and accounting depreciation. In the process of depreciation of fixed assets, to determine the depreciable life of fixed assets is crucial. First, the tax depreciation of fixed assets is how many years "Chinese people's *** and the implementation of the State Enterprise Income Tax Law Regulations" Article 60: In addition to the State Council, the competent departments of finance and taxation, the minimum depreciation of fixed assets is calculated as follows: (a) houses, buildings, 20 years; (b) aircraft, trains, ships, machinery, machinery and other production equipment, 10 years; (c) with the production and operation activities of appliances, tools, machinery and other equipment, 10 years; (d) the production and operation activities of appliances, tools, machinery and other equipment, 10 years; (e) the production and operation activities of appliances, tools, machinery and other equipment. business activities, 5 years; (iv) means of transportation other than airplanes, trains and ships, 4 years; (v) electronic equipment, 3 years. The provisions of this article can be specifically understood in the following aspects. (i) The minimum depreciable life of houses and buildings is 20 years. Housing and buildings as the most important fixed assets, its structure, attributes and other aspects of the relatively special, relatively long service life, relatively high value, the embodiment of the value of its use is also a relatively long process, according to the principle of income and expenditure ratio and other requirements, its depreciation should be relatively long, so the provisions of this article, housing, buildings, the minimum depreciation of 20 years, which basically reflects the housing, This basically reflects the reality of the use of 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. Among them: houses, including factories, business premises, office premises, warehouses, accommodation premises, canteens and other houses, etc.; buildings, including towers, pools, tanks, wells, racks, sheds (excluding temporary sheds, carports and other improvised facilities), yards, roads, bridges, platforms, wharves, dockyards, culverts, gas stations, as well as independent of the houses and machinery outside of the pipeline, chimneys, fences, etc.; houses, buildings and their ancillary facilities (a) The appurtenant facilities of houses and buildings, which are inseparable from the houses and buildings and do not calculate the value separately, including gas, water and oil pipelines, communication and power transmission lines, elevators and sanitary equipment in the houses and buildings. (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 depreciable life is correspondingly longer; machinery, machinery and other production equipment, also has a longer life and other characteristics, the depreciable life should be relatively long. Therefore, the provisions of this article, the minimum depreciable life of such fixed assets for 10 years. Among them: trains, including a variety of locomotives, buses, wagons, as well as supporting facilities on the car is not individually valued; ships, including a variety of motorized ships, as well as supporting facilities on board the ship is not individually valued; 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, etc.. (iii) Appliances, tools, furniture, etc. related to production and business activities, with a minimum depreciation period of five years. Such fixed assets, which are in addition to machinery, machines and other production equipment, but related to production and business activities, i.e., not direct tools of production, but appliances, tools, furniture, etc., which play an auxiliary role in the process of production and business, have a relatively shorter useful life, and their minimum depreciable life is 5 years. (iv) Means of transportation other than aircraft, trains and ships, with a minimum depreciable life of 4 years. In addition to aircraft, 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, with a minimum depreciation period of 3 years. The original foreign tax law implementation rules, the minimum depreciation of electronic equipment for 5 years, taking into account the rapid changes in science and technology, faster technological updates, electronic equipment, the use of a relatively shortened life and other practical factors, this article will be the minimum depreciation of electronic equipment from 5 years to 3 years, so that the enterprise's depreciation deduction 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, as well as robots controlled by electronic computers, numerical control or program-controlled systems. Second, the accounting depreciation of fixed assets of the enterprise if the tax law provides for the minimum depreciable life is not consistent, how should be dealt with? According to the "Announcement of the State Administration of Taxation on Certain Issues Concerning Taxable Income for Enterprise Income Tax Purposes" (Announcement of the State Administration of Taxation No. 29 of 2014), "The enterprise income tax treatment of depreciation of fixed assets (a) If the accounting depreciation life of an enterprise's fixed assets is shorter than the minimum depreciation life prescribed by the tax law, the depreciation provided for by the enterprise according to the accounting depreciation life is higher than that provided for by the minimum depreciation life prescribed by the tax law. If the accounting depreciation life of the enterprise's fixed assets is shorter than the minimum depreciation life under the Tax Law, the depreciation provided for in the accounting depreciation life is higher than the depreciation provided for in the minimum depreciation life under the Tax Law, the taxable income of the current period shall be adjusted upwards. (ii) If the accounting depreciation period of the fixed assets of an enterprise is longer than the minimum depreciation period stipulated in the Tax Law, the depreciation shall be calculated and deducted in accordance with the accounting depreciation period, unless otherwise stipulated in the Tax Law. The minimum depreciation period is twenty years for houses, ten years for airplanes, etc., four years for means of transportation other than airplanes, trains and ships, five years for furniture, etc., and three years for electronic equipment, etc.
Legal Objective:Regulations on the Implementation of Enterprise Income Tax
Article 59
Deduction is allowed for depreciation of fixed assets calculated according to the straight-line method. Enterprises shall calculate depreciation from the month following the month in which the fixed assets are put into use;
Fixed assets that have ceased to be used shall cease to be depreciated from the month following the month in which they cease 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.
Regulations on the Implementation of Enterprise Income Tax
Article 60
Unless otherwise stipulated 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, machinery and other production equipment, 10 years;
(iii) Appliances, 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.