According to Article 10 of the Enterprise Income Tax Law of People's Republic of China (PRC) and Article 55 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC), the unapproved reserve expenditure shall not be deducted when calculating the taxable income. Unapproved reserve expenditure refers to reserve expenditure such as asset impairment reserve and risk reserve that does not meet the requirements of the competent departments of finance and taxation of the State Council.

The provision for impairment of fixed assets belongs to the provision that cannot be deducted before tax.

The Enterprise Income Tax Law of People's Republic of China (PRC) (Decree No.63 of the President of the People's Republic of China) stipulates that:

Article 8 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.

Article 10 When calculating taxable income, the following expenses shall not be deducted:

(1) Dividends, bonuses and other equity investment income paid to investors;

(2) enterprise income tax;

(3) tax late fees;

(four) fines, fines and confiscation of property losses;

(5) Donation expenditures other than those specified in Article 9 of this Law;

(6) sponsorship expenditure;

(7) Unapproved reserve expenditure;

(eight) other expenses unrelated to income.

According to the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning the Taxable Income of Enterprise Income Tax (State Taxation Administration of The People's Republic of China Announcement No.2065438+29, 2004), "III. The fixed assets impairment reserve accrued by an enterprise according to accounting regulations shall not be deducted before tax, and its depreciation shall still be calculated and deducted according to the tax basis of fixed assets determined by the tax law. Execution time, this announcement is applicable to the final settlement of enterprise income tax in 20 13 and subsequent years. If an enterprise receives the assets distributed by the government or shareholders before the final settlement in 20 13, and has not yet handled the enterprise income tax, it may refer to this announcement. For incomplete procedures and unclear evidence, the enterprise should supplement and improve before 20 14 12 3 1. Enterprises that cannot be supplemented before 20 14 12 3 1 shall be regarded as taxable income or included in the total income.

The provision for impairment of assets can only be deducted before tax after it is actually incurred and approved by the tax bureau.

What reserve expenditures can be deducted before tax?

Since unapproved reserve expenses refer to reserve expenses that are not allowed to be deducted before tax, such as asset impairment reserve and risk reserve, which are not in line with the provisions of the competent departments of finance and taxation in the State Council, what are those approved reserve expenses? Mainly includes the following categories:

(1) Financial enterprises: general loan loss, agricultural loan loss reserve and SME loan loss reserve;

(2) Insurance enterprises: insurance guarantee fund, unexpired liability reserve, life insurance liability reserve, long-term health liability reserve, outstanding claims reserve and catastrophe risk reserve;

(3) SME credit guarantee institutions: guarantee compensation reserve and unexpired liability reserve;

(4) Securities industry: stock exchange risk fund, securities settlement risk fund, securities investor protection fund, futures exchange risk reserve, futures company risk reserve and futures investor protection fund;

(5) China UnionPay Co., Ltd.: special risk reserve.

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