When a company has bad debts, its income tax can be adjusted in the following ways.

First of all, enterprises can deduct the actual amount of bad debts as pre-tax expenses when calculating income tax according to the relevant provisions of the Enterprise Income Tax Law. This means that a company can deduct the amount of bad debts directly from its taxable income, thereby reducing the company's tax liability.

Secondly, companies need to meet certain conditions before they can deduct bad debts. According to the provisions of the tax law, enterprises should reasonably identify and confirm the occurrence of bad debts, and record and report them to the tax department in a timely manner.

In addition, companies also need to comply with the relevant requirements of tax laws when deducting bad debts. For example, companies need to file with the tax department and submit relevant evidence and materials to prove the occurrence of bad debts. For bad debts exceeding a certain amount, companies also need to conduct due diligence in accordance with the requirements of tax laws and file reports in accordance with the law.

To sum up, the actual bad debts can be deducted when calculating income tax to adjust the corporate income tax. However, companies need to meet certain conditions and comply with relevant provisions of tax laws when deducting bad debts.

Extended information:

According to the "Enterprise Income Tax Law", enterprises can deduct the actual amount of bad debts as pre-tax expenses when calculating income tax. However, for bad debts exceeding a certain amount, companies still need to conduct due diligence in accordance with the provisions of tax laws and report to the tax department in a timely manner.

The occurrence of bad debts is a common situation in the business process. When a company has bad debts, it can reduce its tax burden by deducting bad debts. However, the tax department will strictly examine companies' applications for bad debt deductions and require companies to provide relevant evidence and information. Therefore, companies must carefully record and file when applying for bad debt deductions to ensure that they meet the requirements of the tax department.

It should be noted that when deducting bad debts, enterprises should reasonably determine and confirm bad debts and report them to the tax department in a timely manner. In addition, enterprises also need to perform due diligence obligations in accordance with the requirements of tax laws to ensure that the bad debt deductions applied for comply with the provisions of tax laws.

To sum up, when a company actually incurs bad debts, it can adjust its income tax by deducting it when calculating income tax. Enterprises need to reasonably apply for bad debt deductions to reduce tax burdens on the premise of meeting certain conditions and complying with relevant provisions of tax laws.