Is the Depreciation Period for Cars 5 Years or 4 Years?
1 Answers
The new tax law stipulates that the depreciation period for cars is 4 years. Article 60 of the "Implementing Regulations of the Enterprise Income Tax Law of the People's Republic of China" stipulates: 20 years for houses and buildings; 10 years for airplanes, trains, ships, machinery, mechanical equipment, and other production equipment; 5 years for utensils, tools, furniture, etc. related to production and business activities; 4 years for means of transportation other than airplanes, trains, and ships; and 3 years for electronic equipment. The details are as follows: 1. Relevant regulations: The "Implementing Regulations of the Enterprise Income Tax Law of the People's Republic of China," which came into effect on January 1, 2008, stipulates that the minimum depreciation period for means of transportation other than airplanes, trains, and ships is 4 years. 2. Enterprise depreciation period: For cars purchased by enterprises before 2008, the depreciation period is determined to be 5 years according to the "Measures for Deduction Before Enterprise Income Tax," which does not violate the stipulations of the "Implementing Regulations of the Enterprise Income Tax Law of the People's Republic of China," and there is no need to adjust the depreciation period.
