According to Article 61 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China, unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the minimum period for calculating depreciation of fixed assets is as follows:

(1) 21 years for houses and buildings;

(2) aircraft, trains, ships, machinery, machinery and other production equipment, 11 years;

(3) five years for utensils, tools and furniture related to production and business activities;

(4) 4 years for means of transport other than airplanes, trains and ships;

(5) three years for electronic equipment.

fixed assets and intangible assets are used to produce products, but also have costs. Its value, that is, its cost, needs to be included in the cost of products. It needs amortization. This is why fixed assets should be depreciated.

however, according to the accrual principle, the amortization period of his cost should not be just one year, but his service life. Therefore, it is necessary to reasonably estimate the cost to be amortized in each period, which is the annual depreciation and amortization. If it is amortized directly at the time of purchase, the expenses in the current year will be high, the profits will be reduced, and the profits in future years will be overestimated. This is not allowed by the accountant.

one of the main characteristics of fixed assets is that they can play a role in several production cycles and keep their original physical form, while their value is gradually transferred to the products produced with the wear and tear of fixed assets. The value of fixed assets transferred to the products is the depreciation of fixed assets.

Extended information:

Accounting standards stipulate that the cost of fixed assets that have reached the intended usable state but have not yet been settled for completion shall be determined according to the estimated value, and depreciation shall be accrued; After the final accounts of completion are processed, the original provisional valuation value will be adjusted according to the actual cost, but the original depreciation amount that has been accrued is not required to be adjusted.

The Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Enterprise Income Tax of Telecom Enterprises (Caishui [2114] No.215) stipulates that telecom enterprises adjust the value of fixed assets due to reasons such as adjusting the original provisional valuation according to the actual final settlement value or finding errors in the original valuation;

The depreciation undercharged in the previous year shall be replenished according to regulations, and it is not allowed to deduct it in the supplementary year. The taxable income of the original year shall be adjusted accordingly, and the corresponding overpayment of tax can offset the income tax payable in the following years.

that is to say, the tax law requires that the original provisional valuation value should be adjusted according to the actual value after the fixed assets are determined, and the depreciation that was undercharged (overcharged) in the previous year should be replenished, and the taxable income of the original year should be adjusted accordingly.

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