Legal basis: Regulations on the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC).
Article 59 The depreciation of fixed assets calculated by the straight-line method is allowed to be deducted. The enterprise shall calculate the depreciation from the next month when the fixed assets are put into use; Depreciation of fixed assets that have ceased to be used shall stop from the next month of the month of cessation of use. An enterprise shall, according to the nature and use of fixed assets, reasonably determine the estimated net salvage value of fixed assets. Once the estimated net residual value of fixed assets is determined, it shall not be changed.
Article 60 Unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the minimum period for calculating the depreciation of fixed assets is as follows: (1) 20 years for buildings; (2) Aircraft, trains, ships, machines, machinery and other production equipment, 10 year; (3) Appliances, tools and furniture. 5 years related to production and business activities; (4) Four years for vehicles other than airplanes, trains and ships; (five) electronic equipment, for 3 years.