A total of 4,391 Ningbo enterprises enjoyed a tax preference saving 80.61 million yuan in income taxes in the fourth quarter of 2014 thanks to the newly-published preferential tax policy in 2014, according to statistics issued by the Ningbo taxation administration.

The policy aims to accelerate depreciation on taxes or entirely deduct relevant costs of newly-purchased fixed assets.

The Ministry of Finance and the National Tax Administration formally launched a new tax preferential policy in November 2014. It enforced accelerated depreciation on taxes of fixed assets purchased after January 1, 2014. The regulation works in the following six emerging industries: bio-pharmaceuticals, special equipment manufacturing, transportation facilities, measuring instruments, electronic products as well as information technology service. In addition, the cost of fixed assets worth less than 5,000 yuan ($800) in all industries can be deducted before taxation. The new policy enables the enterprises to obtain depreciation in a shorter period.

All declared fixed assets purchased last year were valued at 320 million yuan. After the accelerated depreciation by the new tax policy, the depreciation amount increased from 10 million to 20 million yuan, and the company can defer the income taxation of 1.5 million yuan, said Zhu Hongliang, financial manager of Ningbo Haitian Plastic Machinery.