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The impact of the choice of fixed assets depreciation method on corporate profits

1. From a business perspective, choosing different depreciation methods for fixed assets often has a certain impact on the final income. Therefore, the choice of depreciation methods requires greater attention. On the surface, when the value of fixed assets is constant, the total amount of depreciation is a fixed value and cannot be changed through the selection of different depreciation methods.

2. But this is only based on an ideal situation. In reality, the value of time is extremely important, especially in today's ever-changing market conditions. Time is not only money but also an important factor in the development of enterprises. A simple consideration is that the value of money increases over time, and the longer the time, the greater the impact.

3. The situations encountered in actual business operations will be more complex, and the impact depends on many factors. The application of the time value of enterprise funds plays a very important role in the development of enterprises. Therefore, how to choose depreciation methods to obtain maximum benefits requires a full measurement of the overall social situation. Taxation after depreciation deductions is also a key influencing factor.

4. There are many factors for selecting the depreciation method of fixed assets, and it is necessary to grasp the key points and use a long-term perspective and dynamic thinking to make judgments. When a company is actually operating, it can make calculations using known conditions, fully weigh the pros and cons of all parties, and ultimately choose the method that can maximize returns within the legal scope. Extended information

In the process of enterprises weighing various factors to select an appropriate fixed asset depreciation method, profitability is a key point in the selection, which involves the issue of tax payment and directly affects corporate income.

When these times occur, you can check the business status of the company. If the enterprise operates well and has a surplus, the corporate income tax shall be calculated and paid according to the provisions of my country's tax law, that is, the taxable income after deducting the corresponding profit expenses from the total income. If it is still positive after making up for the losses in the previous year, it is a profit, and it needs to be calculated as profit. Pay corporate income tax at the appropriate amount and applicable tax rate.

In this case, companies generally choose the lowest tax rate within the scope of tax laws in order to recover fixed assets as quickly as possible, help the company move forward the cost discount expenses as much as possible, and achieve the purpose of reducing annual profits and reasonably avoiding taxes. Use depreciation life. The reduction in taxes reduces the tax burden of enterprises, brings more profits to enterprises in the early stage, and can calmly face future risks.