Preferential Policies For Accelerated Depreciation Of Foreign-Funded Enterprises And Foreign-Funded Enterprises

Depreciation is an important deduction for income tax.

For taxpayers, implementing accelerated depreciation and delaying the payment of taxes is equivalent to obtaining a loan that does not require interest payments to the tax department, which is the same as the nature of the slow tax payment.

Accelerated depreciation can be carried out in two ways: first, shorten the depreciation period, and two accelerate the depreciation method.

According to the regulations of the foreign enterprise income tax law and the detailed rules for the implementation of the income tax law of foreign enterprises, the minimum depreciation years for fixed assets of foreign invested enterprises and foreign enterprises are as follows: 1., housing and buildings for 20 years; 2., trains, ships, machines, machinery and other production equipment for 10 years; and 3. years of pportation of electronic equipment, trains and ships, and appliances, tools and furniture related to production and operation for 5 years.

(1) houses, including factories, business premises, office buildings, storeroom, accommodation, canteens and other houses; (2) buildings, including towers, floors, slots, wells, shelves, and shelters (excluding temporary shelters, shed and other simple facilities), fields, roads, bridges, platforms, wharfs, docks, culverts, gas stations and pipes, chimneys, walls, etc., which are independent of houses and machinery and equipment; and the 3 ancillary facilities for houses and buildings refer to the inseparable ventilation, water and oil pipelines, communications, pmission lines, elevators, sanitary equipment and so on. The buildings and buildings mentioned here refer to houses, buildings and ancillary facilities for production, operation and use, and for workers' livelihood and welfare services.

The trains, ships, machinery, machinery and other production equipment described here include: 1, trains, buses, lorries, and vehicle supporting facilities that do not calculate the value separately; and (2) ships, including all kinds of motor ships, and the supporting facilities not only for calculating the value alone, but also (3) machinery, machinery and other production equipment, including all kinds of machines, machines, units, production lines and supporting equipment, all kinds of power, pmission and pmission equipment.

The electronic equipment and other means of pport other than trains and ships specifically include: "1" electronic equipment, which is composed of integrated circuits, pistors, electronic tubes, and other electronic devices, which use electronic technology (including software) to play a role, including electronic computers and computer controlled robots, CNC or program-controlled systems; and (2) pport vehicles other than trains and ships, including aircraft, automobiles, electronics, tractors, motorcycles (boats), motorboats, sailing ships and other means of pport.

The fixed assets of foreign investment enterprises and foreign enterprises need to shorten their depreciation years due to special reasons. They can be applied by enterprises. After approval by the local tax authorities, they will be reported to the State Administration of Taxation for approval.

It is said that the fixed assets that need to shorten the depreciation years due to special reasons include: (1) the machinery and equipment strongly corroded by acids and alkaloids and the factories and buildings that are shaking and shaking all the year round; and (2) the machinery and equipment that are used to operate at night and day because of increasing the utilization rate; (2) the cooperation period between the Chinese and foreign cooperative enterprises is shorter than that of the shortest fixed assets, and all the fixed assets of the Chinese partners will be returned after the cooperation expires.

For the depreciation method of fixed assets, the tax law should be calculated by the straight line method.

If other methods need to be adopted, such as the double declining balance method and the annual total sum method, an application can be submitted by the enterprise. After being examined by the local tax authorities, it will be reported to the State Administration of Taxation for approval gradually.

For intangible assets, the tax law should be amortized by the straight-line method.

With regard to the amortization period, the tax law stipulates that as an intangible asset of a pferee or investment, the term of service life stipulated in the agreement or contract may be amortized according to the useful life. The period of amortization shall not be less than 10 years without the stipulation of the useful life or the intangible assets developed by the enterprise itself.

As with depreciation of fixed assets, enterprises should choose shorter amortization years of intangible assets to speed up the amortization of intangible assets.