Article 9 The following losses of assets shall be reported and deducted to the tax authorities in the form of list declaration:

(1) Losses from selling, transferring or selling off non-monetary assets at fair prices in the normal operation and management activities of the enterprise;

(two) the normal loss of enterprise inventory;

(three) the loss of fixed assets that the enterprise has reached or exceeded its service life and is normally scrapped and cleaned up;

(four) the loss of assets caused by normal death when the productive biological assets of the enterprise reach or exceed the service life;

(5) Losses incurred by enterprises in buying and selling bonds, stocks, futures, funds and financial derivatives through various trading places and markets in accordance with the principle of fair market transactions.

Article 10 Asset losses other than those specified in the preceding article shall be declared and deducted to the tax authorities in the form of special declaration. If an enterprise cannot accurately determine whether it belongs to the asset loss declared and deducted by the list, it can declare and deduct it by means of special declaration.

List-based declarations are enumerations, and special declarations are required. From chapter 4 to chapter 7, all losses are required to be declared.

Extended data:

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The Measures for the Administration of Pre-tax Deduction of Enterprise Asset Loss Income Tax was issued by People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.25 on March 201/. The Measures are divided into general provisions, declaration management, evidence of asset loss confirmation, monetary asset loss confirmation, non-monetary asset loss confirmation, investment loss confirmation and other asset loss confirmation, and supplementary provisions with 52 articles in 8 chapters, and shall be implemented as of 20 1 1 year/month 1 day.

After the implementation of the Measures, the Administrative Measures for Pre-tax Deduction of Enterprise Asset Losses (Guo Shui Fa [2009] No.88), the Notice of State Taxation Administration of The People's Republic of China on the Treatment of Enterprise Income Tax for Assets Losses Not Deducted in Previous Years (Guo [2009] No.772) and the Notice of State Taxation Administration of The People's Republic of China on the Pre-tax Deduction of Bad Debt Losses of Telecom Enterprises (Guo [20108).

chapter one

General rule

Article 1 According to the Enterprise Income Tax Law of People's Republic of China (PRC) (hereinafter referred to as the Enterprise Income Tax Law) and its implementing regulations, the Law of People's Republic of China (PRC) on Tax Collection and Administration (hereinafter referred to as the Tax Collection and Administration Law) and its implementing rules,

According to the provisions of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on the Pre-tax Deduction Policy for Enterprise Asset Losses (Caishui [2009] No.57) (hereinafter referred to as the Notice), these Measures are formulated.

Article 2 The term "assets" as mentioned in these Measures refers to assets owned or controlled by enterprises for business management activities, including monetary assets such as cash, bank deposits, receivables and prepayments (including bills receivable, various advances and inter-enterprise current payments).

Inventory, fixed assets, intangible assets, projects under construction, productive biological assets and other non-monetary assets, as well as debt investment and equity investment.

Article 3 Asset losses that are allowed to be deducted before enterprise income tax refer to reasonable losses (hereinafter referred to as actual asset losses) that occur during the actual disposal and transfer of the above-mentioned assets by enterprises, and losses (hereinafter referred to as statutory asset losses) that are calculated and confirmed according to the conditions stipulated in the Notice and these Measures, although the above-mentioned assets are not actually disposed of or transferred by enterprises.

Article 4 Assets losses actually incurred by an enterprise shall be declared and deducted in the year when they actually occurred and were treated by accounting; The loss of legal assets shall be deducted from the annual declaration provided by the enterprise to the competent tax authorities to prove that the assets have met the conditions for confirming the loss of legal assets and have been accounted for.

Article 5 Asset losses incurred by an enterprise shall be reported to the competent tax authorities in accordance with the prescribed procedures and requirements, and then deducted before tax. Undeclared losses shall not be deducted before tax.

Article 6 If the assets losses incurred by an enterprise in the previous year cannot be deducted before tax in that year, it may explain to the tax authorities and make a special declaration for deduction in accordance with the provisions of these Measures.

Among them, the actual loss of assets is allowed to be compensated until the annual deduction of the loss. Compensation confirmation period is generally not more than five years. However, due to the loss of assets left over during the transition of planned economy system, the loss of assets that were not deducted in time due to ownership disputes during the process of enterprise restructuring and listing,

Asset losses caused by undertaking national policy tasks and asset losses caused by special reasons such as unclear policies may be appropriately extended after approval by State Taxation Administration of The People's Republic of China. Belong to the legal loss of assets, should be deducted in the reporting year.

If the enterprise income tax overpaid in previous years due to actual asset losses has not been deducted before tax, it can be deducted from the enterprise income tax payable in the year of retrospective confirmation. If the deduction is insufficient, it will be postponed to the next year.

If an enterprise suffers losses in the actual asset loss year after deducting the losses confirmed by supplementary payment, it shall first adjust the amount of losses in the asset loss year, then calculate the overpaid enterprise income tax in subsequent years according to the principle of making up the losses, and carry out tax treatment in accordance with the method specified in the preceding paragraph.

References:

Baidu Encyclopedia-Adjustment and Declaration of Enterprise Income Tax