Fixed assets are an important part of an enterprise's assets. However, in addition to the depreciation of fixed assets as an expense, the subsequent expenditure will also have a great impact on the profits of enterprises in the current year. We all know that general maintenance of fixed assets can be fully charged into the current year. But the major repair of fixed assets is needed to be shared. So the maintenance of fixed assets and major repairs are in two different ways.

According to the tax law, the major repair of fixed assets refers to the partial updating of the company's fixed assets, which is characterized by large repair scope, long interval, few repair times and large repair cost. Therefore, the general financial need to adopt the method of apportionment, rather than all the costs at once.

The tax law of our country also carries on the clear definition of the big repair, can only be satisfied at the same time2One condition is a major repair:

1.Repair expenditure reaches the tax basis at the time of acquisition of fixed assets50％Above;

2.The service life of fixed assets after repair is extended2More than a year.

And fixed assets repair by the provisions of the expenditure, is to determine the amortization period in accordance with the fixed assets can still be used life.

For exampleAEnterprises are general enterprises, fixed assets repair costs50WRMBIf fixed assets can be used5Years, then need to adopt5Amortize on an annual basis rather than charge it all at once. That yearAThe enterprise has60WRMBThen the profit can only be calculated as:

AProfits of the enterprise in the current year:60W-(50W/5)=50WRMB

ACorporate income tax of the year:50W*25%=12.5WRMB

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