Years Of Fixed Assets Depreciation Can Be Freely Chosen.

In theory, the age of depreciation depends on the useful life of fixed assets.

Because the service life itself is an expected experience value, the choice of depreciation years has a certain elasticity, which provides the possibility for tax planning.

"From the choice of depreciation years, for a general enterprise, that is, in the normal production and operation period but not enjoying preferential tax treatment, reducing the depreciation years of fixed assets will enable enterprises to move forward in the later stage of cost and move forward profits, so as to get the benefits of deferred tax payment.

If a newly established enterprise, especially in the early days of its establishment, enjoys tax relief and preferential treatment, the enterprise can extend the depreciation years, and deduct the depreciated depreciation to the cost after the expiration of the tax exemption, so as to achieve the purpose of saving taxes.

This view has representativeness in the planning of depreciation years. Although it gives the premise of planning success, there are two important premises for shortening the depreciation years. First, the enterprises are in normal production and operation period, and the two is not enjoying any tax preferences. The two must be simultaneously possessed, but they ignore the three basic facts: first, the enterprises do not enjoy tax preferences now, which does not mean that they can not enjoy tax preferences in the future.

Two, because of the adjustment of the national industrial policy and tax policy, enterprises can not enjoy tax concessions for a long time.

That is to say, it is a trend for enterprises to enjoy tax preferences, and the years of depreciation are basically normal after they have been determined.

Three, depreciation years are not optional.

Concerning the issue of depreciation years, the relevant tax laws and regulations have made clear provisions.

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The sixtieth provision of the Implementing Regulations stipulates that except for the State Council's finances,

In addition to the provisions of other departments, the minimum years for calculating depreciation of fixed assets are as follows: (1) housing and buildings for 20 years; second, aircraft, trains, ships, machinery, machinery and other production equipment for 10 years; 3. Appliances, tools and furniture related to production and operation activities are 5 years; 4. Transport vehicles other than planes, trains and ships are 4 years; and electronic equipment for 3 years.

Article sixty-first of the regulations on the implementation of the enterprise income tax law stipulates that the expenses for the enterprises that are engaged in the exploitation of oil and natural gas and other mineral resources before the start of commercial production and the methods for the depreciation and depreciation of fixed assets shall be made by the State Council Finance,

The competent authorities separately stipulate.

The sixty-fourth provision of the regulations on the implementation of the enterprise income tax law stipulates that the minimum years for calculating the depreciation of productive biological assets are as follows: (1) the productive biological assets of forest products are 10 years; second, the productive biological assets of livestock are 3 years.

When the depreciation period determined by the enterprise does not meet the above requirements, the enterprise shall make tax adjustments.

Therefore, when enterprises use fixed assets depreciation years to make tax planning, the scope of choice is limited, and they are not free to choose.