How to amortize the land use right
How to amortize the land use right
1. How to amortize the land use right?
Generally, it is amortized according to the number of years on the real estate license. The amortization of acquired land use rights should be handled according to different situations: if the acquired land use rights are for personal use, the relevant taxes and fees such as transfer fees should be included in intangible assets and amortized in installments within the specified use period. Amortization period generally does not exceed 10 year. Like depreciation, intangible assets can be amortized by straight-line method and accelerated method. In terms of the amount, in general, the amortization expense is far less than the depreciation expense, that is to say, the fixed assets of most companies are far greater than the intangible assets, so amortization and depreciation are generally disclosed together without distinction.
Second, what is the concept of land use right?
Land use right refers to the right of state organs, enterprises, institutions, peasant collectives and individual citizens, as well as foreign-invested enterprises with legal conditions, to possess, use, benefit and restrict the disposal of state-owned land or peasant collective land in accordance with legal procedures or agreements.
Land use right is a relatively broad concept, and the land here includes the right to use agricultural land, construction land and unused land.
The right to use state-owned land refers to the right of state-owned land users to use land according to law and obtain income. The ways to obtain the right to use state-owned land include allocation, transfer, lease and shareholding. The right to use state-owned land obtained with compensation can be transferred, leased, mortgaged and inherited according to law. The allocated land use right can not be transferred, leased or mortgaged until the transfer formalities are completed and the land use right transfer fee is paid back or paid.
Farmers' collective land use right refers to the right of users of farmers' collective land to use the land according to law and obtain income. Farmers' collective land use right can be divided into agricultural land use right, homestead use right and construction land use right. Agricultural land use right refers to the land use right of members of rural collective economic organizations or units and individuals other than rural collective economic organizations engaged in planting, forestry, animal husbandry and fishery production. The right to use homestead refers to the right to use rural villagers' residential land. The right to use construction land refers to the right to use rural collective economic organizations to set up township (town) enterprises and township (town) village public facilities and public welfare undertakings. According to the provisions of the land management law, the right to use agricultural land is obtained by signing a contract between the employer and the contractor. The right to use homestead and construction land can be applied by land users, and then approved by the people's governments at or above the county level according to law.
3. What is the meaning of land use right allocation?
Allocated land use refers to the act of the people's government at or above the county level, with the approval of the law, delivering the land to the land users after paying the compensation and resettlement fees, or delivering the state-owned land use right to the land users free of charge. Unless otherwise stipulated by laws and administrative regulations, the land use right obtained by allocation has no time limit and may not be transferred.
Allocation of land, this way of land has no useful life, but it cannot be mortgaged, transferred or leased. When transferring, it is necessary to report to the government for approval before paying the land transfer fee. Unless otherwise stipulated by laws and administrative regulations, there is no limit on the term of use if the land use right is obtained by allocation. Although there is no time limit for obtaining the allocated land use right without compensation, if the land user stops using the land due to relocation, dissolution, revocation, bankruptcy or other reasons, the state shall recover the allocated land use right without compensation and may transfer it according to law. Due to the needs of urban construction and development and the requirements of urban planning, the allocated land use right can also be recovered free of charge and can be transferred according to law.
The above is about how to amortize the land use right. If it is necessary to obtain the right to use collective land, it is necessary to sign relevant contracts with the relevant institutions that contract the land before obtaining the right to use collective land, and then farmers can work collectively on the land, and the corresponding income belongs to the farmers themselves.
legal ground
According to the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC):
It is allowed to deduct the amortization expenses of intangible assets calculated by the straight-line method.
The amortization period of intangible assets shall not be less than 10 year.
As the investor or transferee of intangible assets, if the relevant laws or contracts stipulate the service life, it can be amortized in installments according to the stipulated or agreed service life. If the agreed term exceeds 10 year, the land use right must be 40 years, and amortized according to 40 years.
Therefore, according to the regulations, the land use right belongs to intangible assets, and the amortization expenses of intangible assets calculated by the straight-line method are allowed to be deducted. The amortization period of intangible assets shall not be less than 10 year.
Moreover, when the unit land is amortized, it can be amortized in accordance with the provisions of the tax law 10 year, or it can be amortized in accordance with the years specified in the land use right (the years on the land certificate). According to Articles 65 and 67 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) (Order No.512 of the State Council of the People's Republic of China):
Article 65 Intangible assets mentioned in Article 12 of the Enterprise Income Tax Law refer to non-monetary long-term assets without physical form held by enterprises for producing products, providing services, leasing or operating management, including patent rights, trademark rights, copyrights, land use rights, non-patented technologies and goodwill.
Article 67 The amortization expenses of intangible assets calculated by the straight-line method may be deducted.
The amortization period of intangible assets shall not be less than 10 year.
As the investor or transferee of intangible assets, if the relevant laws or contracts stipulate the service life, it can be amortized in installments according to the stipulated or agreed service life.
When an enterprise is transferred or liquidated as a whole, expenses for purchasing goodwill are allowed to be deducted.