1. What is the amortization period of intangible assets?

1. The amortization period of intangible assets shall not be less than 10 years. As an investment or transferred intangible asset, if the useful life is stipulated in relevant laws or contracts, it may be amortized in installments according to the prescribed or agreed useful life. Expenditures for outsourced goodwill are allowed to be deducted when the entire enterprise is transferred or liquidated. The investment assets referred to in Article 14 of the Enterprise Income Tax Law refer to the assets formed by enterprises’ external equity investments and debt investments.

2. What is the theoretical basis for amortization of intangible assets

As a long-term asset, the ability of intangible assets to bring future economic benefits to the enterprise will gradually decrease, and its value will also decrease. It gradually decreases during its service life until it is completely lost. Therefore, the value of intangible assets should also be amortized. The current system stipulates that intangible assets should be amortized evenly over the estimated useful life starting from the month of acquisition.

Intangible Assets refer to identifiable non-monetary assets that have no physical form. Intangible assets can be divided into broad and narrow senses. Intangible assets in a broad sense include financial assets, long-term equity investments, patent rights, trademark rights, etc., because they do not have physical entities, but are expressed as certain legal rights or technologies. However, in accounting, intangible assets are usually understood in a narrow sense, that is, patent rights, trademark rights, etc. are called intangible assets.

Article 8 of the "Notice of the State Administration of Taxation on Issuing the Notes on Business Tax Items (Trial Draft)" (Guo Shui Fa [1993] No. 149) stipulates that the transfer of intangible assets refers to the transfer of intangible assets. The act of ownership or right to use.

Intangible assets refer to assets that have no physical form but can bring economic benefits.

The scope of collection of this tax includes: transfer of land use rights, transfer of trademark rights, transfer of patent rights, transfer of non-patented technology, transfer of copyright, and transfer of goodwill.

(1) Transfer of land use rights refers to the transfer of land use rights by land users.

Business tax is not levied on the transfer of land use rights by land owners and the return of land use rights by land users to the land owners.

Land leasing is not taxed according to this tax item.

(2) Transferring trademark rights refers to the act of transferring the ownership or use rights of a trademark.

(3) Transfer of patent rights refers to the act of transferring ownership or use rights of patented technology.

(4) Transferring non-patented technology refers to the act of transferring the ownership or right to use non-patented technology.

The act of providing non-proprietary technology is not taxed according to this tax item.

(5) Transferring copyright refers to the act of transferring the ownership or right to use a work. Works include written works, graphic works (such as picture albums, photo albums), and audiovisual works (such as movie masters and video tape masters).

(6) Transfer of goodwill refers to the act of transferring the right to use goodwill.

According to the above provisions and combined with the situation described in the question, the power generation grid indicators held by the company do not fall within the scope of the above-mentioned intangible assets subject to business tax, and no business tax is required. At the same time, sales of goods and provision of taxable services are not subject to VAT and do not need to pay VAT. |

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Intangible assets include social intangible assets and natural intangible assets

Among them, social intangible assets usually include patent rights, non-patented technologies, and trademark rights. , copyrights, franchises, land use rights, etc.; natural intangible assets include natural resources such as natural gas that do not have physical physical forms.

(1) Patent rights: refers to invention and creation patent applications granted by the national patent authority in accordance with the law. The exclusive rights a person enjoys over his inventions and creations within the statutory period include invention patent rights, utility model patent rights and design patent rights.

(2) Non-patented technology: also known as proprietary technology, refers to technology that is not known to the outside world and should be used in production and business activities. It does not enjoy legal protection and can bring economic benefits. Various techniques and know-how.

(3) Trademark right: refers to the right to use a specific name or pattern exclusively on a specified type of goods or products.

(4) Copyright: Producers enjoy certain special rights in accordance with the law over the literary, scientific and artistic works they create.

(5) Franchise: also known as operating franchise or exclusive right, refers to the right of an enterprise to operate or sell a specific product in a certain area or an enterprise to accept the use of its trademark or trade name by another enterprise , rights to technical secrets, etc.

(6) Land use rights: refers to the state allowing an enterprise to enjoy the right to develop, utilize and operate state-owned land within a certain period of time.

(7) Business secrets

Legal basis:

Article 67 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China"

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The amortization expenses of intangible assets calculated according to the straight-line method are allowed to be deducted. The amortization period of intangible assets shall not be less than 10 years. As an investment or transferred intangible asset, if the useful life is stipulated in relevant laws or contracts, it may be amortized in installments according to the prescribed or agreed useful life. Expenditures for outsourced goodwill are allowed to be deducted when the entire enterprise is transferred or liquidated.