The accelerated depreciation method in accounting refers to a tax deferral policy that requires more depreciation in the early stages of use of fixed assets and intangible assets and less depreciation in the later stages.

Permitted scope of use: fixed assets, intangible assets such as patent rights and proprietary technologies that are greatly affected by technological obsolescence.

Rules that can be used: double declining balance method; sum of years' digits method. Whether an enterprise adopts the accelerated depreciation method for accounting treatment does not affect the enterprise's enjoyment of the preferential tax policy on accelerated depreciation. When an enterprise enjoys the preferential tax policy on accelerated depreciation, it does not need to adopt the same depreciation method for accounting and tax purposes.

Accelerated depreciation in tax law: If fixed assets really need to be depreciated due to technological progress and other reasons, the depreciation period can be shortened or the method of accelerated depreciation can be adopted.

Permitted scope of use: (1) Fixed assets with rapid product updates due to technological progress; (2) Fixed assets that are subject to strong vibration and high corrosion all year round.

Applicable rules: If the method of shortening the depreciation period is adopted, the minimum depreciation period shall not be less than 60% of the prescribed depreciation period; if the method of accelerated depreciation is adopted, the double declining balance method or the sum-of-years’ digits method may be adopted.

Tax preferential policies: New equipment and appliances purchased by enterprises between January 1, 2018 and December 31, 2020, with a unit value not exceeding 5 million yuan, are allowed to be included in the current period in one go Costs and expenses are deducted when calculating taxable income, and depreciation is no longer calculated on an annual basis. "Caishui [2018] No. 54 Notice of the Ministry of Finance and the State Administration of Taxation on Corporate Income Tax Policies Regarding the Deduction of Equipment and Appliances" The so-called equipment and appliances refer to fixed assets other than houses and buildings (hereinafter referred to as fixed assets). The so-called purchase includes purchase in the form of currency or self-construction, in which fixed assets purchased in the form of currency include purchased used fixed assets; fixed assets purchased in the form of currency include the purchase price and related payment. Taxes and other expenses directly attributable to making the asset reach its intended use are used to determine the unit value. For self-constructed fixed assets, the unit value is determined based on the expenses incurred before completion and settlement. A one-time deduction will be made in the month following the purchase of fixed assets, and this preferential policy can only be selected once and cannot be changed in the future.