Circular of the Ministry of Finance and the State Administration of Taxation on the Depreciation of Assets and the Implementation Caliber of the Amortization Policy in the Old Northeast Industrial Base

Circular of the Ministry of Finance and the State Administration of Taxation on the Depreciation of Assets and the Implementation Caliber of the Amortization Policy in the Old Northeast Industrial Base

Cai Shui [2005] No. 17

February 2, 2005

To the departments and bureaus of finance and the bureaus of state taxes and local taxes in Liaoning province, Jilin province, Heilongjiang province, and Dalian city as well as the financial supervisory commissioners' offices of the Ministry of Finance stationed in Liaoning province, Jilin province, Heilongjiang province, and Dalian city:

In order to further implement the preferential policy of the Corporate Income Tax for revitalization of the Northeast industrial base and to avoid the emergence of loopholes in tax administration, the implementation and administration concerning the reduction of the period of depreciation of fixed assets and intangible assets amortization in the enterprises of the old Northeast industrial base (hereinafter referred to as the "enterprise"), is hereby presented as follows:

Article 1 The fixed assets that depreciated by reducing the period of depreciation by no more than 40% refers to those fixed assets purchased by enterprises after July 1, 2004 and those purchased that have not yet finished depreciation prior to July 1, 2004.
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