Interpretation Of The Regulations On The Implementation Of The Enterprise Income Tax Law (Part)

The fifty-eighth fixed assets determine the basis of taxation according to the following methods:

(1) the purchased fixed assets shall be based on the purchase price and the related taxes and fees paid.

(two) the fixed assets that are built on the basis of the tax payable before the completion of the settlement.

(three) the fixed assets that are leased into finance shall be the tax basis based on the total amount of payment stipulated in the lease contract and the related expenses that the lessee has in the process of signing the lease contract.

(four) the fixed assets of inventory surplus are based on the tax return of the same fixed assets.

(five) the fixed assets acquired through donation, investment, non monetary assets exchange and debt restructuring shall be based on the fair value of the asset and the related taxes and fees paid.

(six) in addition to the expenditures stipulated in item thirteenth (1) and (two) of the enterprise income tax law, the revised fixed assets shall be added to the tax base based on the alteration expenses incurred during the reconstruction process.

The definition of tax basis for "fixed assets" is four.

The fixed assets of inventory surplus are based on the full value of the replacement of similar fixed assets. The fixed assets of inventory surplus refers to the fixed assets that are found in inventory. The unit value of fixed assets is relatively high and the use time is relatively long. Generally speaking, for the management standard enterprises, it is rare to find the fixed assets of inventory surplus in the inventory. However, this is only an ideal state, and this regulation has abolished the restrictions on the minimum value standard of fixed assets. In practice, the fixed assets of inventory surplus always exist. In order to ensure the pertinence and integrity of the regulations, it is necessary to make corresponding provisions for the tax base of fixed assets acquired under such circumstances. Because the fixed assets of inventory surplus often do not record or record the incomplete information in the accounting books of the enterprise, it can not effectively determine its historical cost. Therefore, this item extends the practice rules of the Interim Regulations of the original domestic enterprise income tax, stipulates that the fixed assets of disk profit are calculated by the full value of the fixed assets of the same kind, and the so-called replacement value is calculated, that is to say, the cost of repurchasing the same fixed assets according to the existing production capacity and technical standards. The tax basis calculated by this method is relatively scientific and reasonable, and also accords with the special needs of the source of fixed assets. Specifically, if the same or similar fixed assets exist in the active market, the balance should be deducted according to the market price of similar or similar fixed assets, and the balance after the value loss estimated by the new and old assets of the asset is deducted as the account value; if the same kind or similar fixed assets do not exist active market, the current value of the expected future cash flow of the fixed assets shall be regarded as the entry value.

Five, the determination of the tax base of fixed assets obtained through donation, investment, non monetary assets exchange and debt restructuring.

The fixed assets that are obtained through donation, investment, non monetary assets exchange and debt restructuring shall be based on the fair value of the asset and the related taxes and fees paid. The detailed rules for the implementation of the Interim Regulations on income tax of original domestic enterprises stipulate that the fixed assets that are granted to be granted shall be determined according to the amount listed in the invoice plus the transportation costs, insurance premiums, installation and commissioning fees borne by the enterprises, etc. No appended invoice shall be determined according to the market price of the similar equipment, and the fixed assets that are accepted for investment shall be determined according to the depreciation level of the asset and the reasonable price determined by the contract or agreement or the assessed and confirmed price. That is, the rules for the implementation of the Interim Regulations on income tax of original domestic enterprises only stipulate the valuation of fixed assets acquired by enterprises through two forms of donation and investment, without stipulating the method of determining the tax basis of fixed assets acquired by enterprises through non monetary assets exchange and debt restructuring. This article has further improved this, and has changed the corresponding method of determination, taking the fair value of such assets and the related taxes and fees paid as the tax basis. The reason why the fair value is the tax base of such fixed assets is mainly due to the fact that the donor of fixed assets, the party who carries on the investment with fixed assets, the party who changes the fixed assets in the exchange of non monetary assets, and the party who pays the debts with fixed assets in the debt restructuring, should be treated as sales according to the provisions of the enterprise income tax law, that is, it should be treated as the two process of selling the fixed assets first, reinvesting, reinvesting, repurchasing the non monetary assets and repaying the debts. Therefore, as the recipient of fixed assets, the accounting value of fixed assets, such as deed tax, land value-added tax, vehicle purchase tax, stamp duty and so on, may be accepted according to the market price of the asset, that is, the fair value and the acceptance of the fixed assets.

Six. The determination of the tax base of the modified fixed assets.

In addition to the expenditures stipulated in item thirteenth (1) and (two) of the enterprise income tax law, the revised fixed assets shall be added to the tax base based on the alteration expenses incurred during the reconstruction process. This is the relevant provisions on how to deal with the change of the tax base of fixed assets in special circumstances. Unlike the above several forms of obtaining fixed assets, fixed assets converted from fixed assets are not from scratch, and fixed assets are already owned by enterprises. Only when assets change during the holding period of fixed assets, it is necessary to make adjustments to the original tax base. The detailed rules for the implementation of the Interim Regulations on income tax of original domestic enterprises stipulate that, on the basis of original fixed assets, the expansion and expansion shall be determined according to the original value of fixed assets and the expenses arising from the alteration and expansion. This basically extends the original provision, but defines two exceptions to such expenditures. The thirteenth provision of the enterprise income tax law stipulates that the expenditures for the reconstruction of fixed assets that have been fully extracted from depreciation and the conversion expenses of renting fixed assets are the long-term expenses to be paid as enterprises. Therefore, it is not suitable for these two cases to restructure expenditures as the tax basis for fixed assets. This is the difference between this item and the relevant provisions of the Interim Regulations on the income tax of the original domestic enterprises. Therefore, in addition to the fixed assets and the fixed assets that have been fully extracted and depreciated, the expenses for the alteration of other fixed assets should be increased according to the alteration expenses in the process of reconstruction, including material costs, labor costs, and related taxes and fees.