Article 49 of the Detailed Rules of the Tax Law stipulates that the reserve fund of an enterprise shall be amortized by installments from the second month of the month when it starts production and operation, and the amortization period shall not be less than 5 years. Land use rights should be amortized separately as intangible assets. The amortization period of intangible assets, if stipulated in the contract, shall be amortized according to the fixed period stipulated in the contract; If there is no agreement in the contract, it shall be amortized according to the period of not less than 10 year.
Therefore, the cost of intangible assets should be amortized within its expected service life; (that is, the legal period or the effective period of the patent right, whichever is shorter), if the expected service life exceeds the benefit period stipulated in the relevant contract or the effective period stipulated by law.
For example, on 20 19 1 month, Company A purchased an invention patent. The invention patent was granted on June 20 15, 16, that is, the remaining validity period is 16 (the invention patent is valid for 20 years), that is, the amortization period is 16.