According to the fixed assets rented by the enterprise in the form of operating lease, the initial overall renovation cost of fixed assets in line with Article 13 of the Enterprise Income Tax Law can be used as long-term deferred expenses and amortized in three years.

According to Article 8 of the Enterprise Income Tax Law and Article 33 of its implementing regulations, future renovation expenses can be deducted as current expenses in a lump sum before enterprise income tax.