Is there a time limit for hotel decoration amortization?

Hello, the amortization period of decoration costs

Article 13 of my country’s Enterprise Income Tax Law stipulates: When calculating taxable income, the following expenditures incurred by the enterprise shall be treated as long-term expenses. If amortization expenses are amortized in accordance with regulations, deductions are allowed: (1) Expenditures for reconstruction of fixed assets that have been fully depreciated; (2) Expenses for reconstruction of leased fixed assets; (3) Expenses for major repairs of fixed assets; (4) ) Other expenses that should be treated as long-term deferred expenses. According to Article 70 of the "Regulations for the Implementation of the Enterprise Income Tax Law" (State Council Order No. 512): "Other expenditures referred to in Item (4) of Article 13 of the Enterprise Income Tax Law that should be regarded as long-term deferred expenses shall not be incurred since the expenditures are incurred. It will be amortized in installments starting from the month following the month of the month, and the amortization period shall not be less than 3 years. "Therefore, the decoration expenses incurred by your company in renting the house through operating leases should be regarded as long-term deferred expenses, starting from the second month of the month in which the expenses are incurred. Starting from the month, amortization will be carried out in installments and the amortization period shall not be less than 3 years. If the actual useful life is less than 3 years, it will be amortized based on the actual useful life based on relevant legal certificates.

1. The amortization period of the decoration fee should be based on the shorter of the time between the two decoration days and the length of the lease period. That is to say, if the next decoration is three years later, and the lease period If it is 5 years, it should be amortized over three years, and vice versa;

2. The starting point of amortization should be the month when it can be used. Your understanding is correct

3. Now accounting standards have downplayed the monthly accounting period, and generally can be amortized on an annual basis. Of course, for management reasons, it may be necessary to calculate more accurate profits every month, so it is still recommended to amortize on a monthly basis.

According to the Implementation Regulations of the Enterprise Income Tax Law:

Article 70: Other expenditures referred to in Item (4) of Article 13 of the Enterprise Income Tax Law that should be regarded as long-term deferred expenses shall be Amortization will be made in installments starting from the month following the month in which the expenditure occurs, and the amortization period shall not be less than 3 years.

The tax law stipulates a minimum period of three years. If the decoration can only be used for three years, the tax bureau has no right to ask for a five-year amortization.

The decoration fee for rented fixed assets should be Amortized in installments according to the remaining lease term stipulated in the contract.

Renovation of self-owned fixed assets, expenditures that meet the following conditions at the same time:

(1) Repair expenditures reach more than 50% of the tax basis when the fixed assets are acquired;

(2) The service life of fixed assets after repair is extended by more than 2 years.

Amortization is based on the remaining useful life of fixed assets.

If the renovation of self-owned fixed assets does not meet the above conditions at the same time, it can be included in the current profit and loss in one lump sum

We hope to adopt it