According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issuing Announcement (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.25, 20 1 1), the losses caused by the normal scrapping and cleaning of the fixed assets of enterprises that have reached or exceeded their service life shall be declared and deducted to the tax authorities in the form of list declaration. The losses caused by the scrapping or damage of fixed assets shall be the balance of the net book value after deducting the residual value and the compensation of the responsible person, and shall be confirmed according to the following evidential materials:

(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.

According to the Announcement on Matters Related to Deduction of Asset Losses before Income Tax (Su Shi Tu Gui [2011] No.2), enterprises should declare the deducted asset losses in the form of list declaration, and submit the Pre-tax Deduction Declaration Form for Enterprise Asset Losses (List Declaration) to the competent local tax authorities at the same time as the annual enterprise income tax declaration. When an enterprise declares the asset loss deducted by special declaration, it shall submit the Declaration Form for Pre-tax Deduction of Enterprise Asset Loss (Special Declaration) to the competent local tax authorities at the same time as the annual enterprise income tax declaration.

Taxpayers should attach accounting data and other relevant tax payment materials in accordance with the requirements of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issuing the Administrative Measures for Pre-tax Deduction of Enterprise Asset Loss (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2011No.25). Do not meet the above requirements, the competent local tax authorities shall require them to correct; If the enterprise refuses to make corrections, the competent local tax authorities will not accept it.