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Q：
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What are intangible assets?
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A：
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Intangible assets refer to non-monetary long-term assets held by enterprises for the production of products, provision of services, rental or business management, without physical form, including patents, trademarks, copyrights, land use rights, non-patented technologies, goodwill, etc.
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Q：
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What method should be used to confirm the tax basis for intangible assets?
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A：
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The various assets of an enterprise, including fixed assets, biological assets, intangible assets, long-term deferred expenses, investment assets, inventory, etc., the tax basis of the assets shall be determined based on historical cost. The historical cost refers to the actual expenses incurred by the enterprise when acquiring the asset.
During the period when an enterprise holds various assets, the appreciation or impairment of assets shall not be adjusted to the tax basis of such assets, except for those that can be recognized as gains and losses by the financial and tax authorities of the State Council.
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For externally purchased intangible assets, the tax basis is based on the purchase price, relevant taxes paid, and other expenses directly attributable to achieving the intended use of the asset.
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For self-developed intangible assets, the tax basis is based on the expenses incurred from the time the asset meets the capitalization conditions during the development process until it reaches its intended use.
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Intangible assets obtained through donations, investments, non-monetary asset exchanges, debt restructuring, etc. the tax basis of the assets shall be determined based on the fair value of the asset and the relevant taxes and fees paid.
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Q：
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How to recognize amortization deductions for intangible assets that meet regulations?
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A：
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The amortization expenses of intangible assets calculated using the straight-line method are allowed to be deducted.
The amortization period of intangible assets shall not be less than 10 years. As intangible assets for investment or acquisition, if the relevant laws or contracts stipulate the useful life, they can be amortized in instalments according to the prescribed or agreed useful life.
The expenditure on purchased goodwill is allowed to be deducted during the overall transfer or liquidation of the enterprise.
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Q：
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What intangible assets cannot be amortized and deducted before corporate income tax?
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A：
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Independently developed expenses have been deducted from the calculation of taxable income for intangible assets.
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Self-created goodwill.
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Intangible assets unrelated to business activities.
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Other intangible assets that cannot be deducted by amortization expenses.
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Q：
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Can the amortization period of intangible assets be changed after being determined?
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A：
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Once the amortization period is determined, generally it cannot be changed.
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FAQ
