The bad debt provisions made by financial enterprises according to the following formula are allowed to be deducted before tax. The bad debt provisions that are allowed to be deducted before tax = the asset balance that is allowed to draw bad debt provisions at the end of this year × 1% - the bad debt provisions that were allowed to be withdrawn before tax at the end of the previous year The balance of the allowance for doubtful debts deducted.

When a financial enterprise declares pre-tax deduction for bad debt losses, it must also submit the following relevant documents and information:

(1) Application report for pre-tax deduction of bad debt losses.

(2) Loan and investment contracts, loan and investment certificates and related materials.

(3) Relevant certification materials issued by the government, courts, public security, industrial and commercial administration departments, enterprise authorities, insurance companies and other units.

(4) Other information required to be submitted by the tax authorities. If a financial enterprise cannot provide relevant information, the competent tax authorities have the right to refuse to accept the application.