State Council: Tax Reduction In Light Industry, Textile And Other Fields

Recently,

It is decided to expand the scope of accelerated depreciation of fixed assets on the basis of 6 industries, such as biopharmaceuticals, instrument manufacturing, and so on. The newly purchased fixed assets of enterprises in 4 key industries of light industry, textile, machinery and automobile will be allowed to shorten the depreciation years or adopt accelerated depreciation methods after January 1st of this year.

If the implementation of the policy is in place, this year can reduce the expenditure for this enterprise by 5 billion yuan, that is, tax reduction of 5 billion yuan.

According to the notice issued by the two department on the further improvement of the enterprise income tax policy for accelerating depreciation of fixed assets, nearly 20 new industries that enjoy the policy include light chemical industries, including cosmetics, daily chemical products manufacturing, pharmaceutical manufacturing, agricultural and sideline food processing, food manufacturing, fur making and footwear making, furniture manufacturing, plastic products and so on. Textile fields include textile, clothing, apparel, textile and chemical fiber manufacturing industries; machinery includes general equipment manufacturing, general equipment manufacturing, electrical machinery and equipment manufacturing, and automobile manufacturing.

The two sector said that

After January 1, 2015, the newly purchased instruments and equipment shared by R & D and production and operation, with a unit value of not more than 1 million yuan, shall be allowed to be included in the current period cost at a time when deducting the amount of taxable income, and no more than the annual depreciation shall be calculated. If the unit value exceeds 1 million yuan, the enterprise may choose to shorten the depreciation years or adopt accelerated depreciation methods.

In addition, the policy has been implemented since January 1, 2015.

In the first 3 quarters of 2015, it was not calculated according to the regulations, and it should be dealt with in the fourth quarter of 2015 when it was paid in advance or when it was calculated and paid in 2015.

It is clear that the light industry that enjoys the fixed assets to accelerate depreciation enterprise income tax policy.

There are nearly 20 key industries involved in the four newly increased fields, including machinery and automobiles. After January 1st this year, enterprises in these industries have newly purchased fixed assets, and they can shorten their depreciation years or adopt accelerated depreciation methods to get tax cuts.

The two department issued the document, which is the specific implementation of the decision made by the Executive Council of the State Council to expand the scope of accelerated depreciation of fixed assets.