According to the Measures for the Administration of Pre-tax Deduction of Assets Loss of Enterprises, enterprises can apply for income tax deduction under the following circumstances: the loss of selling, transferring or selling off non-monetary assets at fair prices in normal business management activities; Normal losses of various inventories of enterprises; The loss of fixed assets that the enterprise has reached or exceeded its service life and is normally scrapped and cleaned up; Loss of assets caused by the normal death of productive biological assets of enterprises that have reached or exceeded their service life; 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.