2008•Journal of Shazhou Professional Institute of TechnologyRequires access

Tax Planning Based on the Depreciation Methods of the Fixed Assets

Guo Jing-juan

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Abstract

The method of depreciation of the fixed assets determines the annual depreciation amount of a company.And it is closely related to the calculation of deductible amount before tax and the tax,i.e.how much tax is a company bearing.A reasonable comparison and analysis should be made when a company calculates the depreciation of fixed assets.Only by the proper tax planning based on specific cases,can an effective method be reached to make the most earnings out of ‘tax saving’.

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The method of depreciation of the fixed assets determines the annual depreciation amount of a company.And it is closely related to the calculation of deductible amount before tax and the tax,i.e.how much tax is a company bearing.A reasonable comparison and analysis should be made when a company calculates the depreciation of fixed assets.Only by the proper tax planning based on specific cases,can an effective method be reached to make the most earnings out of ‘tax saving’.

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Available abstract

The method of depreciation of the fixed assets determines the annual depreciation amount of a company.And it is closely related to the calculation of deductible amount before tax and the tax,i.e.how much tax is a company bearing.A reasonable comparison and analysis should be made when a company calculates the depreciation of fixed assets.Only by the proper tax planning based on specific cases,can an effective method be reached to make the most earnings out of ‘tax saving’.

Key concepts: Consumption of fixed capital, Fixed asset, Depreciation (economics), Deferred tax, Tax planning, Economics, Business, Tax basis

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