The Reply of State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Guarantee Losses Caused by Mutual Loan Guarantee (Guo [2007]1272) stipulates that Article 47 of the Administrative Measures for Pre-tax Deduction of Enterprise Property Losses (State Taxation Administration of The People's Republic of China Order No.47) stipulates: "If an enterprise provides a guarantee related to its own taxable income, because the guarantor fails to repay the debt on time, Loan guarantees provided by enterprises to other independent taxpayers unrelated to their taxable income, principal and interest borne by the guarantor for repayment of loans, etc. , shall not be declared and deducted.