1. Pre-tax deduction: investment losses can be deducted before tax, that is, when calculating taxable income, the amount of investment losses can be deducted first, and then the taxable amount can be calculated;
2. After-tax deduction: In some countries and regions, investment losses can only be deducted after tax, that is, the taxable income is calculated first, then the investment loss is deducted, and finally the taxable amount is calculated. For example, in China, investment losses can only be deducted after calculating the taxable income, and they can only be deducted if certain conditions are met, such as providing relevant certification materials.
The tax laws and regulations of different countries and regions may be different, and the specific deduction methods and conditions should be determined according to the relevant local regulations and requirements. At the same time, investors should also pay attention to verify the authenticity and legality of investment losses when calculating investment losses, so as to ensure that they get legal tax incentives.
The following are some common pre-tax deduction conditions:
1. Personal income tax: Pre-tax deductions for personal income tax include standard deductions, personal and family credits, retirement accounts and education savings plans.
2. Enterprise income tax: The pre-tax deduction items of enterprise income tax include research and development fees, technology transfer fees, employee education fees, employee training fees, environmental protection equipment and energy-saving equipment.
3. Other taxes: In some countries and regions, other taxes are deducted before tax, such as India's contribution fund and Brazil's social security fund.
To sum up, the pre-tax deduction items and conditions may be different in different countries and regions, and the specific deduction items and conditions should be determined according to local relevant regulations and requirements. At the same time, taxpayers need to abide by relevant laws, regulations and provisions when enjoying preferential treatment of pre-tax deduction to ensure the legality and effectiveness of the deduction items and conditions they enjoy.
Legal basis:
Article 8 of the Enterprise Income Tax Law of People's Republic of China (PRC)
Reasonable expenses related to income actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.