According to the State Administration of Taxation on the issuance of "pre-tax deduction for enterprise income tax" notice (State Taxation [2000] No. 84), Article 25 of the provisions of the minimum depreciation of means of transportation other than trains and ships, unless otherwise specified, is 5 years. Therefore, the unit purchased a used car, its useful life of more than 5 years, according to 5 years of depreciation; useful life of less than 5 years, you can put forward proof of evidence, by the local tax authorities in charge of the examination and approval of the depreciation according to its useful life.

2. According to Article 56 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China (Decree No. 512 of the State Council of the People's Republic of China), the assets of an enterprise, including fixed assets, biological assets, intangible assets, long-term amortized expenses, investment assets, inventories and so on, shall be taxed on the basis of their historical cost. The historical cost referred to in the preceding paragraph refers to the expenditure actually incurred by the enterprise when it acquired the asset.

Three, Article 58 stipulates that the tax basis of fixed assets shall be determined in accordance with the following methods, (a) for fixed assets purchased abroad, the purchase price and related taxes paid, as well as other expenditures directly attributable to the expenses incurred in bringing the asset to its intended use shall be used as the tax basis.

4. According to Article 60 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China (Decree No. 512 of the State Council of the People's Republic of China), unless otherwise provided by the competent departments in charge of finance and taxation of the State Council, the minimum number of years for the calculation of depreciation of fixed assets shall be as follows, (iv) four years for means of transportation other than airplanes, trains and ships.

Therefore, when an enterprise acquires an automobile that has been used but not yet fully depreciated, the taxable base of the vehicle shall be determined according to the expenditure actually incurred by the enterprise when it acquires the asset. Depreciation should be provided over the minimum depreciable life (4 years) as stipulated in the tax law, minus the number of years over which the transferor has actually depreciated the vehicle, in order to provide for the remaining depreciable life.