According to the Notice of State Taxation Administration of The People's Republic of China on Defining the Implementation Time for Enterprises to Adjust the Residual Value Ratio of Fixed Assets [Guoshuihan (2005) No.883], the residual value of fixed assets is uniformly determined as 5%.

At the same time, there is a provision in the new income tax law that says: for means of transport other than airplanes, trains and ships, it is four years.

Therefore, the depreciation period of the car is 4 years, and the net salvage value is 5%.