Bankers often hear the word loan write-off. What is loan write-off? Baidu put it this way: loan write-off is the abbreviation of "write-off of non-performing loans", which is a system for banks to write off non-performing loans or loan losses in accordance with regulations.

What exactly is loan write-off? Is the borrower still using it after loan write-off?

After reading this definition, I believe you still don't know enough about loan write-off. Loan write-off is actually an accounting system, which actually allows banks to deduct loan losses before tax when calculating enterprise income tax.

We often hear bankers say pre-tax write-offs and post-tax write-offs. What does this mean? In fact, pre-tax write-off means that loan losses can be deducted before tax when calculating income tax. For after-tax write-off, it is not really write-off. In fact, loan losses do not meet the requirements of pre-tax deduction of losses and can be included in accounting. However, the tax law does not allow this loss to be deducted when calculating income tax. The consequence of not allowing deduction is that this part of the loss will be subject to 25% corporate income tax.