Measures for the Administration of Pre-tax Deduction of Enterprise Asset Loss Income Tax

Chapter I General Principles

Article 1 According to the Enterprise Income Tax Law of People's Republic of China (PRC) (hereinafter referred to as the Enterprise Income Tax Law) and its implementing regulations, the Law of People's Republic of China (PRC) on Tax Collection and Management (hereinafter referred to as the Tax Collection and Management Law) and its implementing rules, and the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance of People's Republic of China (PRC) on the Pre-tax Deduction Policy for Enterprise Asset Losses (Caishui [2009] No.57) (hereinafter referred to as the Notice),

Article 2 The term "assets" as mentioned in these Measures refers to the assets owned or controlled by an enterprise for business management activities, including monetary assets such as cash, bank deposits, receivables and prepayments (including bills receivable, various advances, enterprise current accounts), and non-monetary assets such as inventory, fixed assets, intangible assets, construction in progress, productive biological assets, debt investment and equity (equity) investment.

Article 3 Asset losses that are allowed to be deducted before enterprise income tax refer to reasonable losses (hereinafter referred to as actual asset losses) that occur during the actual disposal and transfer of the above-mentioned assets by enterprises, and losses (hereinafter referred to as statutory asset losses) that are calculated and confirmed according to the conditions stipulated in the Notice and these Measures, although the above-mentioned assets are not actually disposed of or transferred by enterprises.

Article 4 Assets losses actually incurred by an enterprise shall be declared and deducted in the year when they actually occurred and were treated by accounting; The loss of legal assets shall be deducted from the annual declaration provided by the enterprise to the competent tax authorities to prove that the assets have met the conditions for confirming the loss of legal assets and have been accounted for.

Article 5 Asset losses incurred by an enterprise shall be reported to the competent tax authorities in accordance with the prescribed procedures and requirements, and then deducted before tax. Undeclared losses shall not be deducted before tax.

Article 6 If the assets losses incurred by an enterprise in the previous year cannot be deducted before tax in that year, it may explain to the tax authorities and make a special declaration for deduction in accordance with the provisions of these Measures. Among them, if it is the actual asset loss, it is allowed to recover until the loss year is deducted, and the recovery confirmation period is generally not more than five years. However, with the approval of State Taxation Administration of The People's Republic of China, the recovery confirmation period can be appropriately extended for asset losses caused by special reasons, such as the loss of assets left over during the transition of planned economic system, the loss of assets that cannot be deducted in time due to unclear ownership, the loss of assets caused by undertaking national policy tasks, and the loss of assets caused by unclear policy nature. Belong to the legal loss of assets, should be deducted in the reporting year.

The enterprise income tax overpaid because the actual asset losses in previous years were not deducted before tax can be deducted from the enterprise income tax payable in future years for retrospective confirmation. If the deduction is insufficient, it will be postponed to future years.

If an enterprise suffers losses in the actual asset loss year after deducting the losses confirmed by supplementary payment, it shall first adjust the amount of losses in the asset loss year, then calculate the overpaid enterprise income tax in subsequent years according to the principle of making up the losses, and carry out tax treatment in accordance with the method specified in the preceding paragraph.

Chapter II Administration of Declaration?

Article 7 An enterprise may submit the asset loss declaration materials and tax payment materials to the tax authorities as annexes to the annual tax return of enterprise income tax.

Article 8 According to the different contents and requirements of declaration, the loss of enterprise assets can be divided into two forms: list declaration and special declaration. Among them, the loss of assets declared in the list can be classified and summarized by accounting subjects, and then the summary list will be submitted to the tax authorities, and relevant accounting materials and tax payment materials will be kept for future reference; For the asset losses that are specially declared, the enterprise shall submit the application report item by item (or individually), and attach the accounting information and other relevant tax payment information.

If an enterprise fails to meet the above requirements in the process of pre-tax deduction of asset losses, the tax authorities shall require it to make corrections. If the enterprise refuses to make corrections, the tax authorities have the right to refuse.

Article 9 The following losses of assets shall be reported and deducted to the tax authorities in the form of list declaration:

(1) Losses from selling, transferring or selling off non-monetary assets at fair prices in the normal operation and management activities of the enterprise;

(two) the normal loss of enterprise inventory;

(three) the loss of fixed assets that the enterprise has reached or exceeded its service life and is normally scrapped and cleaned up;

(four) the loss of assets caused by normal death when the productive biological assets of the enterprise reach or exceed the service life;

(5) Losses incurred by enterprises in buying and selling bonds, stocks, futures, funds and financial derivatives through various trading places and markets in accordance with the principle of fair market transactions.

Article 10 Asset losses other than those specified in the preceding article shall be declared and deducted to the tax authorities in the form of special declaration. If an enterprise cannot accurately determine whether it belongs to the asset loss declared and deducted by the list, it can declare and deduct it by means of special declaration.

Article 11 Asset losses incurred by consolidated tax paying enterprises operating across regions in China shall be declared and deducted according to the following provisions:

(a) the loss of assets of the head office and its branches shall be reported to the local competent tax authorities in accordance with the relevant provisions of special declaration and list declaration, and all branches shall also report to the head office;

(2) Unless otherwise provided by the tax authorities, the head office shall declare the asset losses reported by its branches to the local competent tax authorities by means of list declaration;

(three) the head office to the local competent tax authorities to declare the loss of assets belonging to cross-regional branches.

Article 12 An enterprise shall provide State Taxation Administration of The People's Republic of China with relevant information on the asset losses caused by the decision of the State Council. After reviewing the relevant materials, State Taxation Administration of The People's Republic of China will notify the relevant tax authorities of the losses. Enterprises should make special declarations according to the requirements of these measures.

Article 13 If an enterprise is unable to submit the relevant materials within the prescribed time limit due to special reasons, it may apply to the competent tax authorities, and the declaration may be postponed appropriately after approval by the competent tax authorities.

Article 14 An enterprise shall establish and improve the management system for internal write-off of asset losses, and collect, sort out, compile, examine, declare and save evidence of pre-tax deduction of asset losses in time for the convenience of tax authorities.

Article 15 The tax authorities shall, in accordance with the principle of itemized filing and hierarchical management, establish the management ledger and tax files for pre-tax deduction of enterprise assets losses, and make timely assessment. If the amount of asset loss is large or it is found that it does not meet the requirements of pre-tax deduction of asset loss, or there are doubts or abnormal situations, it should be checked in time. If there is evidence to prove that the asset losses declared and deducted are untrue and illegal, tax treatment shall be carried out according to law.

Chapter III Confirmation Evidence of Asset Loss?

Article 16 Evidence related to the loss of enterprise assets includes external evidence with legal effect and internal evidence of specific matters.

Seventeenth legally binding external evidence refers to legally binding written documents issued by judicial organs, administrative organs and professional technical appraisal departments. , are related to the loss of assets of enterprises, mainly including:

(a) the judgment or ruling of the judicial organ;

(two) the closing certificate and reply of the public security organ;

(3) the cancellation, revocation and closure certificate issued by the industrial and commercial department;

(4) Announcement or liquidation documents of enterprise bankruptcy liquidation;

(5) Official documents of administrative organs;

(six) the appraisal report of the professional and technical departments;

(seven) the economic evaluation certificate of the intermediary institution with legal qualifications;

(eight) the arbitration documents of the arbitration institution;

(9) Insurance certificates such as accident investigation sheet and claim calculation sheet issued by the insurance company for the insured assets;

(ten) other evidence in accordance with the law.

Article 18 Internal evidence of specific matters refers to an enterprise with a sound accounting system and a sound internal control system, which provides internal evidence or assumes responsibility for the damage, scrapping, inventory loss, death and deterioration of various assets, mainly including:

(1) Relevant accounting materials and original vouchers;

(2) List of assets.

(3) Business contracts related to economic activities;

(four) the identification documents or materials of the internal technical appraisal department of the enterprise;

(5) The internal approval documents and relevant materials of the enterprise;

(six) the responsibility identification and compensation for the losses caused by the management responsibility of the responsible person;

(seven) the legal representative of the enterprise, the person in charge of the enterprise and the person in charge of finance shall bear legal responsibility for the authenticity of specific matters.

Chapter IV Confirmation of Loss of Monetary Assets?

Article 19 The loss of an enterprise's monetary assets includes the loss of cash, the loss of bank deposits and the loss of receivables and prepayments.

Twentieth cash losses shall be confirmed according to the following evidence:

(1) Cash inventory table confirmed by the cash custodian (including records dating back to the base date);

(two) the cash custodian's explanation of the shortage and the relevant approval documents;

(three) the identification of the responsibility for the losses caused by the management responsibility and the description of the compensation of the responsible person;

(four) involving criminal offences, there should be relevant materials issued by judicial organs;

(5) A certificate of counterfeit money collection issued by a financial institution.

Article 21 The loss of deposit assets incurred by an enterprise due to the liquidation of financial institutions shall be confirmed according to the following evidential materials:

(a) the original documents of the enterprise's assets;

(2) Legal documents on the bankruptcy liquidation of financial institutions;

(3) the distribution of the remaining assets of the financial institution after liquidation.

If the financial institution should be liquidated and has not been liquidated for more than three years, the enterprise may recognize the money as a loss of assets, but it should have an incomplete liquidation certificate issued by the court or bankruptcy liquidation administrator.

Article 22 The bad debt losses of receivables and prepayments of enterprises shall be confirmed according to the following relevant evidential materials:

(a) the contract, agreement or explanation of the relevant matters;

(2) If the debtor goes into bankruptcy liquidation, there is a bankruptcy liquidation announcement of the people's court;

(3) In the case of litigation, the judgment or award of the people's court or the arbitration letter of the arbitration institution, or the legal document finally executed by the court;

(4) If the debtor suspends business, it shall have a certificate of cancellation or revocation of its business license issued by the industrial and commercial department;

(5) If the debtor is dead or missing, the public security organ and other relevant departments shall provide the debtor's personal death or missing certificate;

(6) In case of debt restructuring, there shall be a debt restructuring agreement and a statement on the tax payment of the debtor's restructuring income;

(seven) due to natural disasters, wars and other force majeure can not be recovered, there should be a description of the debtor's disaster situation and a statement to abandon the creditor's rights.

Twenty-third enterprises overdue for more than three years have been treated as losses in accounting, which can be regarded as bad debt losses, but should explain the situation and issue a special report.

Article 24 Accounts receivable that are overdue by an enterprise for more than one year, and the single amount does not exceed 50,000 yuan or one ten thousandth of the total annual income of the enterprise, and have been treated as losses in accounting, can be regarded as bad debt losses, but the situation shall be explained and a special report shall be issued.

Chapter V Confirmation of Loss of Non-monetary Assets?

Article 25 The loss of non-monetary assets of an enterprise includes loss of inventory, loss of fixed assets, loss of intangible assets, loss of construction in progress and loss of productive biological assets.

Twenty-sixth inventory losses, the balance of the loss amount after deducting the compensation to the responsible person, shall be confirmed according to the following evidence:

(a) the basis for determining the taxable cost of inventory;

(2) Relevant internal responsibility identification, compensation for the responsible person and internal approval documents;

(3) Inventory list;

(4) the statement of the stock keeper on the loss of stock.

Twenty-seventh inventory scrap, damage or deterioration losses, the taxable cost after deducting the residual value and compensation to the responsible person, should be confirmed according to the following evidence:

(1) The basis for determining the taxable cost of inventories;

(2) Information about scrap, damage, deterioration, salvage value and write-off of inventory within the enterprise;

(three) involving the compensation of the responsible person, there shall be a description of the compensation;

(4) If the loss amount is relatively large (it refers to accounting for more than 65,438+00% of the taxable cost of such assets of the enterprise, or reducing the taxable income of the current year by more than 65,438+00%, the same below), there should be professional technical appraisal opinions or special reports issued by legally qualified intermediaries.

Article 28 For the loss of stolen inventory, the balance of the taxable cost after deducting insurance claims and compensation from the responsible person shall be confirmed according to the following evidence:

(1) The basis for determining the taxable cost of inventories;

(2) Records of reporting cases to public security organs;

(three) involving the responsible person and the insurance company compensation, compensation should be explained.

Twenty-ninth fixed assets inventory losses, losses, the net book value after deducting the compensation of the responsible person, it should be confirmed according to the following evidence:

(1) Identification and verification of internal responsibilities of the enterprise;

(2) Fixed assets inventory table;

(3) Relevant information on the tax basis of fixed assets;

(4) Description of inventory losses and losses of fixed assets;

(five) if the loss amount is large, there should be a professional technical appraisal report or a special report issued by an intermediary agency with legal qualifications.

Thirtieth fixed assets scrapped, damaged losses, the balance of its net book value after deducting the residual value and compensation to the responsible person, shall be confirmed according to the following evidence:

(1) Relevant information on the tax basis of fixed assets;

(2) Identification and verification of relevant responsibilities within the enterprise;

(3) Appraisal materials issued by relevant departments within the enterprise;

(four) involving liability compensation, there shall be a description of the compensation situation;

(five) due to force majeure such as large losses or natural disasters, the fixed assets are damaged or scrapped, and there should be professional technical appraisal opinions or special reports issued by legally qualified intermediaries.

Thirty-first fixed assets stolen losses, the balance of its net book value after deducting the compensation of the responsible person, should be confirmed according to the following evidence:

(1) Relevant information on the tax basis of fixed assets;

(two) the public security organs for the record, the public security organs to file a case, solve the case, the case of proof;

(three) involving liability compensation, there should be a description of the responsibility identification and compensation.

Thirty-second losses of projects under construction and scrapped projects refer to the balance of the book value of project investment after deducting the residual value, which shall be confirmed according to the following evidence:

(a) the basis for determining the book value of the project investment;

(two) the reasons for the suspension of construction of the project and related materials;

(3) For projects that are stopped or scrapped due to quality reasons and projects that are stopped or scrapped due to natural disasters and accidents, professional technical appraisal opinions, responsibility identification and compensation explanations shall be issued.

Thirty-third the loss of engineering materials can be confirmed with reference to the provisions of these measures.

Thirty-fourth losses of productive biological assets, the balance of the net book value after deducting the compensation to the responsible person, shall be confirmed according to the following evidence:

(1) List of productive biological assets;

(2) Description of inventory loss of productive biological assets;

(three) the loss of productive biological assets is large, and the enterprise should have professional technical appraisal opinions, responsibility identification and compensation explanation.

Thirty-fifth losses of productive biological assets caused by forest diseases and insect pests, epidemics and deaths shall be confirmed according to the following evidential materials:

(1) loss description;

(2) Responsibility identification and compensation explanation;

(three) if the loss amount is large, there should be professional technical appraisal opinions.

Article 36 The loss of productive biological assets caused by illegal logging, theft or loss shall be the balance of its net book value after deducting insurance compensation and compensation from the responsible person, and shall be confirmed according to the following evidential materials:

(a) after the theft of productive biological assets, the record of reporting the case to the public security organ or the certification materials for the public security organ to file, solve and close the case;

(2) Responsibility identification and compensation explanation.

Article 37 If an enterprise fails to redeem the mortgaged assets on time, and the mortgaged assets are auctioned or sold, and the difference between the net book value and the sold value is large, it can be recognized as asset loss, and it can be confirmed according to the following evidential materials:

(1) Mortgage contract or agreement;

(two) the auction or sale certificate and list;

(3) Accounting data and other relevant evidential materials.

Thirty-eighth intangible assets that have been replaced by other new technologies or have exceeded the statutory protection period, have lost their use value and transfer value, and have not been amortized, shall submit the following evidence for the record:

(1) Accounting data;

(2) The internal approval documents and relevant materials of the enterprise;

(3) technical evaluation opinions and written statements signed by the legal representative, principal responsible person and financial controller of the enterprise to confirm that intangible assets have no use value or transfer value;

(four) the legal protection period of intangible assets.

Chapter VI Confirmation of Investment Losses

Thirty-ninth enterprise investment losses include creditor's rights investment losses and equity investment losses.

Fortieth, the confirmation of the loss of the enterprise's creditor's rights investment shall be based on the original documents, contracts or agreements, accounting data and other relevant evidential materials. In case of loss of creditor's rights investment in the following circumstances, relevant certification materials shall also be issued:

(1) The debtor or guarantor is declared bankrupt, closed, dissolved or revoked, business license revoked, missing or dead, etc. A certificate of liquidation of assets or a certificate of liquidation of inheritance shall be issued according to law. If the assets liquidation certificate or the estate liquidation certificate cannot be issued, and the above matters are more than three years, or the balance of creditor's rights investment (including credit card overdraft and student loan) is less than three million yuan, the corresponding debtor and guarantor bankruptcy, closure, dissolution certificate, cancellation document, cancellation certificate or inquiry certificate of the administrative department for industry and commerce shall be issued, and recourse records (including original records such as judicial recourse, telephone recourse, letter recourse and door-to-door recourse) shall be issued;

(2) For the creditor's rights that can't be recovered after the debtor suffers from a major natural disaster or accident, the enterprise shall issue a certificate of the debtor suffering from a major natural disaster or accident, an insurance compensation certificate, an asset liquidation certificate, etc. ;

(3) If the debtor is legally liable, its assets are insufficient to repay the borrowed debts, and there are no other debtors, it shall issue a certificate of court ruling and a certificate of asset settlement;

(4) If the debtor and guarantor are unable to repay the debts due, the enterprise brings a lawsuit or arbitration, the debtor and guarantor are enforced by the people's court, and the debtor and guarantor have no assets to execute, and the people's court decides to terminate or terminate (suspend) the execution, it shall issue a ruling of the people's court;

(5) If the debtor and guarantor are unable to repay the debts due, the enterprise is rejected after filing a lawsuit, and the people's court refuses to accept or support it, or the debtor's liability is exempted (or partially exempted) by the arbitration institution, and the creditor's rights that cannot be recovered after recovery shall be submitted to the court with a certificate of rejection of prosecution, or the court refuses to accept or support it, or the arbitration institution decides to exempt the debtor's liability;

(six) the creditor's rights approved for write-off in the State Council project shall provide the approval documents of the State Council or the documents approved by the relevant departments of the State Council after the consent of the State Council.

Article 41 The loss of equity investment of an enterprise shall be confirmed according to the following relevant evidential materials:

(1) Proof materials on the tax basis of equity investment;

(2) Bankruptcy announcement and bankruptcy liquidation documents of the invested enterprise;

(3) The administrative department for industry and commerce cancels or revokes the business license documents of the invested entity;

(four) the decision document of the relevant government departments on the administrative treatment of the invested entity;

(5) The legal or other documents certifying the termination of the operation and transaction of the invested enterprise;

(six) the asset disposal plan, transactions and accounting information of the invested enterprise;

(seven) a written statement signed by the legal representative, principal responsible person and financial controller of the enterprise to confirm the loss of investment (equity);

(8) Accounting data and other relevant evidential materials.

Article 42 If the invested enterprise is declared bankrupt, closed, dissolved, revoked, its business license is revoked, its production and business activities are stopped or it is missing, it shall issue a certificate of liquidation of assets or a certificate of liquidation of its heritage.

If the above matters have not been liquidated for more than three years, the certificate of bankruptcy, closure, dissolution or cancellation of the invested enterprise and the explanation of the reasons for the non-liquidation shall be issued.

Article 43 If an enterprise entrusts a financial institution to lend money to other units, or entrusts other operating institutions to conduct financial management, and fails to recover the loan or financial management funds at maturity, it shall be handled in accordance with the relevant provisions in Chapter VI of these Measures.

Article 44 If an enterprise provides external guarantees related to its production and business activities, it shall be jointly and severally liable because the guaranteed party fails to repay its debts on time. After recourse, the guaranteed party has the ability to repay the debt free of charge, and the unrecoverable part shall be treated with reference to the loss of accounts receivable stipulated in these Measures.

The guarantee related to the production and operation activities of an enterprise refers to the guarantee provided by the enterprise to the outside world for its taxable income, investment, financing, material procurement, product sales and other production and operation activities.

Article 45 Losses incurred by an enterprise in transferring assets to affiliated enterprises according to the principle of independent transaction, or losses incurred by providing loans and guarantees to affiliated enterprises, are allowed to be deducted, but the enterprise shall make a special explanation, and at the same time issue a special report issued by an intermediary agency and relevant certification materials.

Article 46 The following equity and creditor's rights shall not be deducted as losses before tax:

(1) The debtor or guarantor has economic repayment ability and fails to repay the creditor's rights of the enterprise on time;

(two) in violation of laws and regulations, in various forms and excuses to evade or suspend the creditor's rights of enterprises;

(three) administrative intervention to avoid or suspend the creditor's rights of enterprises;

(four) the creditor's rights that the enterprise has not recovered from the debtor and guarantor;

(5) Creditor's rights of the enterprise in non-business activities;

(six) other enterprise creditor's rights and equity that should not be written off.

Chapter VII Confirmation of Loss of Other Assets?

Article 47 If an enterprise bundles (packages) different kinds of assets and sells them by auction, inquiry, competitive negotiation, bidding and other market methods, the difference between the selling price and the taxable cost can be regarded as the loss of assets, which can be deducted before tax, but it should provide the asset disposal plan, the pricing basis of various assets, the description of the sales process, the sales contract or agreement, the proof of transaction and entry, and the tax basis of assets.

Article 48 If the internal control system is not perfect, or the operation is improper or irregular due to business innovation, resulting in the normal operation of the enterprise, but the policy is not clear and matching, the amount that should be borne by the enterprise can be regarded as the loss of assets, and it is allowed to be deducted before tax, but the certificate of the cause of the loss, the qualitative certificate of the business supervision department and the special explanation of the loss should be issued.

Article 49 The losses incurred by an enterprise due to a criminal case, the amount that should be borne by the enterprise, or the amount that has not been recovered after more than two years of investigation by the public security organ, can be regarded as asset losses and allowed to be deducted before tax. However, proof materials such as case investigation by public security organs or people's procuratorates or judgments of people's courts should be provided.

Chapter VIII Supplementary Provisions?

Article 50 Asset losses not covered by these Measures may also be reported to the tax authorities for deduction as long as they comply with the provisions of the Enterprise Income Tax Law and its implementing regulations and other laws and regulations.

Article 51 The state taxation bureaus and local taxation bureaus of provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning may formulate specific implementation measures according to these measures.

Article 52 These Measures shall come into force as of 20111. Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Administrative Measures for Pre-tax Deduction of Enterprise Asset Losses (Guo Shui Fa [2009] No.88), Notice of State Taxation Administration of The People's Republic of China on the Treatment of Enterprise Income Tax on Assets Losses Not Deducted in Previous Years (Guo [2009] No.772) and Notice of State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Bad Debt Losses of Telecom Enterprises (Guo [〔20 10/0).

Batch application.