Facades and houses made of steel structure, brick and cement are all buildings in tax law, and the minimum depreciation period is 20 years.
There is no provision for net salvage rate in tax law. At the same time, the depreciation period of the house can be determined by itself in accounting treatment, but if the depreciation period determined by the enterprise is less than the minimum depreciation period of the tax law, it is necessary to increase the tax when calculating the enterprise income tax;
If the depreciation period adopted by the enterprise is longer than the minimum depreciation period of the tax law, the depreciation amount deducted before tax shall be deducted according to the amount calculated by accounting, and no tax adjustment shall be made.
Article 60 "Regulations for the Implementation of the Enterprise Income Tax Law" 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) 20 years for houses and buildings; ?
Article 5 of Announcement No.201429 of State Taxation Administration of The People's Republic of China stipulates as follows:
V. Treatment of enterprise income tax on depreciation of fixed assets
Article 8 of "Announcement of State Taxation Administration of The People's Republic of China on Several Issues Concerning Tax Treatment of Taxable Income of Enterprise Income Tax" (State Taxation Administration of The People's Republic of China Announcement No.2012 15) stipulates: If the expenses confirmed by an enterprise according to the financial accounting system and in actual accounting treatment do not exceed the pre-tax deduction scope and standards stipulated by the tax law and relevant tax regulations, they can be deducted according to the actual accounting treatment of the enterprise and calculated before the enterprise income tax.
(1) Coordination that the accounting depreciation period of an enterprise is shorter than the minimum depreciation period of the tax law. Article 8 of the Enterprise Income Tax Law stipulates that reasonable costs and expenses actually incurred by an enterprise related to obtaining taxable income are allowed to be deducted before tax. After the enterprise's accounting depreciation has been fully accrued, there is no accounting depreciation in the remaining tax depreciation period. However, since the depreciation accrued in the previous period has been increased by tax according to the provisions of the tax law, that is to say, the difference between tax and accounting has actually been accounted for. Therefore, it should be allowed to reduce the tax in the later period according to the provisions of the tax law. This treatment conforms to the basic principle of pre-tax deduction of enterprise income tax and does not conflict with the provisions of Article 8 of Announcement 15.
(2) Coordination that the accounting depreciation period of an enterprise is longer than the minimum depreciation period of the tax law. If the accounting depreciation period of an enterprise's fixed assets is longer than the minimum depreciation period stipulated in the tax law, it is deemed that there is no difference between accounting and tax law. According to the announcement of 15, the depreciation deduction should be calculated according to the accounting period, and there is no need to reduce the tax when the annual settlement is made. This treatment greatly reduces the cost of tax adjustment and conforms to the legislative spirit of 15 announcement.
(3) Taxes on depreciation of fixed assets for which provision for impairment is made in accounting will be different and coordinated. According to the provisions of the tax law, the provision for impairment of fixed assets accrued by enterprises should be subject to tax increase. In addition, according to the provisions of the tax law, the tax basis of an enterprise's fixed assets shall not be adjusted unless the profit and loss can be confirmed according to the provisions of the competent departments of finance and taxation of the State Council. As the provision for impairment of fixed assets accrued by enterprises has been increased by tax and not deducted before tax, although the net book value of fixed assets has been reduced, the tax basis of the fixed assets has not been adjusted at this time, and depreciation deduction can still be calculated according to the tax basis determined by the tax law. This treatment is in line with the tax law and the legislative intent of announcement 15.
(D) Accounting and tax depreciation methods lead to differences in tax coordination. In one case, if an enterprise implements accelerated depreciation according to Article 32 of the Enterprise Income Tax Law, the announcement makes it clear that the depreciation calculated according to the accelerated depreciation method can be deducted in full before tax, and it is not necessary to see whether it has been treated according to accelerated depreciation in accounting according to the announcement of 15. On the other hand, the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Enterprise Expenses for Exploitation of Oil (Gas) Resources and Tax Treatment of Depreciation of Fixed Assets (Caishui [2009] No.49) stipulates that the development assets formed by oil and gas enterprises before commercial production are allowed to be deducted by straight-line method, and the minimum depreciation period is 8 years. According to the accounting standards, enterprises can use the output method or the life average method to make provision for depreciation of oil and gas assets. In the case of using the output method to calculate the depreciation of assets, there will be tax differences. If the provisions of the announcement of 15 are simply applied, the depreciation (depreciation) will not be deducted in time, which violates the provisions of Article 8 of the Enterprise Income Tax Law. Based on this, the announcement makes it clear that when oil and gas mining enterprises accrue depreciation of oil and gas assets, the difference in depreciation (depreciation) caused by different calculation methods stipulated in accounting and tax law should be adjusted according to tax law.
Regulations on the Implementation of Enterprise Income Tax Law in official website, State Taxation Administration of The People's Republic of China
Announcement of State Taxation Administration of The People's Republic of China on Some Issues Concerning Tax Treatment of Taxable Income of Enterprise Income Tax (official website, State Taxation Administration of The People's Republic of China)