The estimated useful life of intangible assets should be evaluated by relevant agencies. The legal life limit is ten years. The law stipulates that the amortization life of intangible assets shall not be less than 10 years. Intangible assets refer to those that have no physical form. Identifiable non-monetary assets
The useful life of intangible assets is as follows
Some intangible assets are acquired from contractual rights or other legal rights, and their useful lives should not be Expiration of contractual or other statutory rights. However, if the expected period of use of the asset by the enterprise is shorter than the period specified by the contractual rights or other legal rights, its useful life should be determined based on the period of expected use of the enterprise. For example, if an enterprise obtains a patented technology, the legal protection period is 20 years, and the enterprise expects that the products produced using the patent will bring economic benefits to the enterprise in the next 15 years. Regarding this patented technology, the third party promised to the company to purchase the patent right at 60% of its fair value on the date of acquisition within 5 years. Judging from the current holding plan of the company's management, it is prepared to sell it to the third party within 5 years. Three parties. For this reason, the actual service life of the patent is 5 years.
To sum up, it is generally based on the service life stipulated in the contract. If there is no service life stipulated in the contract, then the service life shall be based on the law. If there is no law stipulating the service life, then the service life shall be based on the estimated service life. .
Legal Basis
Article 67 of the "Enterprise Income Tax Law Implementation Regulations"
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 can 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.