Legal Analysis: China's luxury goods market currently has the highest tax rate in the world. The prices of 20 brands of high-end consumer goods in five categories, such as watches, bags, clothing, wine and electronics, are about 45% higher than those in Hong Kong, 5 1% higher than those in the United States and 72% higher than those in France.

Legal basis: Enterprise Income Tax Law of People's Republic of China (PRC).

Article 11 The depreciation of fixed assets calculated by an enterprise according to regulations shall be deducted when calculating the taxable income.

The following fixed assets shall not be depreciated:

(1) Fixed assets other than houses and buildings that have not been put into use;

(2) Fixed assets leased in the form of operating lease;

(3) Fixed assets leased by means of financial leasing;

(4) Fixed assets that have been fully depreciated and still continue to be used;

(5) Fixed assets unrelated to business activities;

(6) Land separately priced and accounted for as fixed assets;

(seven) other fixed assets that cannot be deducted from depreciation.

Article 12 The amortization expenses of intangible assets calculated by an enterprise in accordance with regulations shall be deducted when calculating taxable income.

Amortization expense deduction shall not be calculated for the following intangible assets:

(1) Intangible assets whose self-development expenses have been deducted when calculating taxable income;

(2) Self-created goodwill;

(3) Intangible assets unrelated to business activities;

(4) Other intangible assets that cannot be deducted from amortization expenses.