At a time when the industry is sluggish and investment continues to weaken, Chinese officials have once again introduced preferential policies on depreciation of fixed assets and tax credits. On the basis of six industries including the original bio-pharmaceuticals, we will expand the range of accelerated depreciation of fixed assets, and new purchases of enterprises in key industries such as light industry (including plastics industry), textiles, machinery and automobiles will be purchased after January 1 this year. Fixed assets, allowing for a shortened depreciation period or an accelerated depreciation method.
The plastics industry belongs to the light industry. It is also in the list of preferential policies. The fields involved are as follows: plastic film manufacturing; plastic sheet, tube and profile manufacturing; plastic wire, rope and woven fabric manufacturing; foam plastic manufacturing; plastic artificial leather, synthetic leather Manufacturing; plastic packaging and container manufacturing; daily plastic products manufacturing; plastic parts manufacturing; other plastic products manufacturing; plastic furniture manufacturing.
The specific preferential policies are as follows:
Small and medium-sized micro-enterprise newly purchased units with a value of not more than 1 million yuan for R&D and production sharing equipment, allowing one-time inclusion of current costs and expenses before tax; if it exceeds 1 million yuan, it is allowed to shorten the depreciation period or adopt accelerated depreciation method.
The so-called accelerated depreciation of fixed assets, that is, at the beginning of the use of fixed assets such as equipment, instruments, more depreciation amount, less mention later. This means that the profit of the enterprise in the early stage, that is, the taxable income is relatively low, and the tax burden is relatively light. Although the total tax burden remains the same, the former is light and heavy, which is equivalent to the enterprise can postpone tax payment.
Some industry commentators believe that accelerated depreciation of fixed assets means that enterprises can “use the money in the future”. In the current period, they can have more loose cash for investment and technological transformation and upgrading, instead of paying taxes immediately, which is conducive to revitalizing cash flow. Improving cash flow and helping plastics companies can be seen immediately.

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