Interpretation Of Tax Planning In The Depreciation Of Fixed Assets

As a whole, the choice of depreciation policy should not only reduce the market price of enterprises, but also satisfy the financial needs of enterprises in a specific period as much as possible.

Due to different depreciation methods, the estimated net residual value is one of the factors that affect the depreciation of each period. It also indirectly affects the taxable income in the current period, because the fifty-ninth clause and third paragraph of the regulations on the implementation of the enterprise income tax law stipulates: "enterprises should reasonably determine the estimated net residual value of fixed assets according to the nature and use of fixed assets.

The estimated net residual value of fixed assets shall not be changed once determined. "

There is no hard regulation on the rate of residual value of fixed assets by tax law. Enterprises have the right to determine the residual value of fixed assets and the residual rate of fixed assets can be zero.

It seems that the estimated net residual value of fixed assets has more room to avoid tax.

However, the above provisions should not be ignored to emphasize a reasonableness. This requires enterprises to reasonably determine the residual value of fixed assets according to their own production and operation conditions and the nature and use of fixed assets.

That is to say, it is not arbitrary and unwarranted for an enterprise to determine the estimated net salvage value. Instead, it must consider the characteristics of the fixed assets and the actual situation of the enterprises using fixed assets. If the enterprises do not determine the estimated net salvage value based on the unreasonable nature of the fixed assets and the unreasonable commercial purposes such as paying less taxes, they will be adjusted by the tax authorities and bear corresponding legal liabilities.

It is important to note that the "expected residual value is not changed after confirmation" is mainly to prevent enterprises from arbitrarily adjusting profits in the year to avoid tax by changing the net residual value of fixed assets.

In addition, all over the country

There are corresponding regulations on the residual value of fixed assets.

It can be seen that the determination of the residual value of fixed assets is not arbitrary, and its tax planning space is very small.

Generally speaking, the development of enterprises

There are three main objectives: first, lighten the tax burden; two, reduce tax related risks; and three, achieve financial goals.

And many of the studies or discussions we are looking at now tend to talk about the first goal, that is to say, in terms of tax revenue, the use of depreciation for tax planning is also true.

However, tax planning is ultimately a financial activity. It must serve the financial objectives and not exceed the general principles and objectives of financial activities, though it is related to others.

It is quite different, but its result lies in the results of financial activities, and it can not be simply evaluated independently.

The choice of depreciation policy should be considered at the same time: 1.

Because depreciation costs are precipitated in the enterprise with the recovery of payment, and become an important source for enterprises to update their fixed assets.

Therefore, the choice of depreciation policy should be based on the demand for funds in the future period and the financing environment to be faced.

Second, the impact of investment on enterprises.

An important factor affecting the investment decision of fixed assets is the scale of funds available. Because depreciation policy affects the amount of internal financing, it also indirectly affects the investment activities of enterprises.

Third, the influence of profit distribution.

The choice of depreciation policy directly determines the cost of depreciation into the cost of products and services.

When other factors remain unchanged, different depreciation policies will make the amount of the allotment profit different in the same period, thus affecting the profit distribution of enterprises.