State Taxation Administration of The People's Republic of China: Which enterprises are not applicable to the new accelerated depreciation policy?

Individual businesses, sole proprietorships and partnerships-not applicable.

Approved collection enterprises-not applicable

Manufacturer of daily chemical products-applicable

Loss-making enterprises-applicable

After this policy adjustment, the enterprises that can implement accelerated depreciation include biopharmaceutical manufacturing, special equipment manufacturing, railway, shipbuilding, aerospace and other transportation equipment manufacturing, computer, communication and other electronic equipment manufacturing, instrument manufacturing, information transmission, software and information technology services, and four key industries: light industry, textile, machinery and automobile.

According to Article 1 of the Enterprise Income Tax Law, "enterprises and other organizations with income are taxpayers of enterprise income tax in People's Republic of China (PRC) (China)" and "this law is not applicable to sole proprietorship enterprises and partnership enterprises". Accordingly, individual industrial and commercial households, sole proprietorship enterprises and partnership enterprises are not taxpayers of enterprise income tax and cannot enjoy the accelerated depreciation policy of fixed assets. Accelerated depreciation enterprise income tax concessions are applicable to enterprises with sound accounting documents and audit collection, and enterprises approved for collection cannot enjoy accelerated depreciation tax concessions.

Loss-making enterprises can enjoy preferential treatment, because the losses caused by the accelerated depreciation policy of fixed assets can be carried forward in the next five tax years to make up.

How to choose accelerated depreciation method

According to People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.68 (20 15), if an enterprise meets the conditions of enjoying accelerated depreciation policy, it is allowed to shorten the depreciation period or adopt accelerated depreciation method. Among them, if the accelerated depreciation method is adopted, the double declining balance method or the sum of years method can be adopted.

Double declining balance method refers to a method of calculating the depreciation of fixed assets by subtracting accumulated depreciation from the original value of fixed assets at the beginning of each period and multiplying it by the straight-line depreciation rate without considering the estimated net residual value of fixed assets.

The sum-of-years method, also known as the sum-of-years method, refers to the calculation of annual depreciation by multiplying the balance of the original value of fixed assets minus the estimated net salvage value by a decreasing fraction, with the fair service life of fixed assets as the numerator and the sum of the estimated service life as the denominator.

It should be reminded that when enterprises implement accelerated depreciation, different fixed assets can use different depreciation methods, but only one accelerated depreciation method can be used for the same fixed asset, and multiple methods cannot be used at the same time.

In addition, whether enterprises adopt accelerated depreciation method in accounting treatment does not affect enterprises' enjoyment of depreciation tax preferential policies. Enterprises do not need to adopt the same depreciation method in accounting and taxation at the same time when enjoying the preferential tax policy of accelerated depreciation.

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Fixed assets purchased on 20 14-not applicable

Fixed assets leased by finance lease-not applicable

Self-built fixed assets-applicable

20 15 purchase of second-hand machinery and equipment-applicable

Unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the minimum depreciation period of fixed assets is as follows:

1. Houses and buildings, 20 years;

2. Aircraft, trains, ships, machines, machinery and other production equipment, 10 year;

3. Appliances, tools and furniture related to production and business activities, 5 years;

4. Means of transportation other than airplanes, trains and ships, 4 years;

5. Electronic equipment, 3 years.

People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Bulletin 20 15 No.68 uses income indicators to identify key industry enterprises in four fields. In other words, enterprises in key industries in the four fields refer to industries such as light industry, textile, machinery and automobile, and their main business income accounts for more than 50% (excluding) of the total income in the year when fixed assets are put into use, and they can enjoy preferential policies for accelerated depreciation.

When determining the industry to which an enterprise belongs according to the income proportion of its main business, the total income refers to the total income stipulated in Article 6 of the Enterprise Income Tax Law, that is, the income obtained by an enterprise from various sources in monetary and non-monetary forms, including income from selling goods, income from providing labor services, income from transferring property, income from equity investment such as dividends and bonuses, interest income, rental income, royalties income, income from accepting donations and other income.

The fixed assets in the policy include houses and buildings. Fixed assets are purchased in different ways, and the time of purchase is also different. In practical work, enterprises should purchase equipment based on the time when the equipment invoice is issued; If the equipment is purchased by installment or credit sale, the arrival time of the equipment shall prevail; Self-built fixed assets shall be subject to the final settlement time of the construction project in principle.

Enterprises take fixed assets that are priced separately as depreciation units, and can determine depreciation methods according to their respective attributes. Different fixed assets units of the same batch or the same asset class may adopt different depreciation methods in accordance with the provisions of the tax law.

Enjoy preferential treatment and pay attention to these collection and management issues.

Does accelerated depreciation of fixed assets require the approval of tax authorities? In this regard, Liu Baozhu said that eligible taxpayers can directly enjoy this preferential policy in the enterprise income tax prepayment declaration and final settlement declaration, without going to the tax authorities for approval. Enterprises should keep invoices, accounting vouchers and other relevant materials for future reference, and establish management ledgers to accurately reflect the differences between tax law and accounting.

It is the taxpayer's right to enjoy tax incentives, and taxpayers are free to choose. Therefore, People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.68 (20 15) stipulates that the fixed assets of enterprises should meet the conditions of this preferential policy, as well as other preferential policies for accelerated depreciation such as software and integrated circuit enterprises. Enterprises can choose one of the preferential policies to implement, and once selected, it shall not be changed.

Need to be reminded that the fixed assets purchased by the enterprise in the first three quarters can be handled in two ways if they fail to enjoy accelerated depreciation in declare in advance:

The first way is to enjoy it in the fourth quarter of 20 15, that is, the accelerated depreciation part that should be enjoyed in the first three quarters and the accelerated depreciation part that should be enjoyed in the fourth quarter should be summarized and filled in the Prepaid Declaration Form to calculate the enjoyment in the fourth quarter of 20 15.

The second method can be enjoyed in the declaration of enterprise income tax settlement in 20 15, that is, the unused accelerated depreciation should be enjoyed in the first three quarters, and the tax adjustment should be made in the declaration of enterprise income tax settlement in 20 15, which can be enjoyed uniformly.

According to the spirit of the the State Council executive meeting and the Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Further Improving the Enterprise Income Tax Policy for Accelerated Depreciation of Fixed Assets (Caishui [20 15] 106), further improving the accelerated depreciation policy of fixed assets mainly includes the following contents:

First, the accelerated depreciation policies for fixed assets of enterprises in key industries in four fields are stipulated, that is, fixed assets newly purchased by enterprises in key industries such as light industry, textile, machinery and automobile after 20 15 1, and the depreciation period can be shortened or accelerated depreciation methods can be adopted;

Second, the special policies for accelerated depreciation of fixed assets of small-scale low-profit enterprises in four key industries are stipulated, that is, newly purchased instruments and equipment shared by R&D in key industries such as light industry, textile, machinery and automobile after 20 15 1 are allowed to be included in one time. If the unit value exceeds 6,543,800 yuan, it is allowed to shorten the depreciation period or adopt the accelerated depreciation method;

Third, it stipulates the choice of preferential policies for accelerated depreciation of enterprises, that is, enterprises can choose whether to implement accelerated depreciation policies according to their own production and operation needs;

Fourth, the starting time of policy implementation and the failure to enjoy preferential tax treatment in the first three quarters were stipulated, that is, the accelerated depreciation policy of fixed assets was implemented from 20 15 1.