According to Article 9 of the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issuing the Management Measures for Pre-tax Deduction of Enterprise Asset Losses (State Taxation Administration of The People's Republic of China Announcement No.201KLOC-0/25): "The following asset losses shall be declared and deducted to the tax authorities in the form of list declaration: (1) The losses of non-monetary assets sold, transferred or sold by enterprises at fair prices in the normal business management activities; (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 stipulates: "Loss of assets other than those specified in the preceding article shall be declared and deducted to the tax authorities in the form of special declaration. Enterprises can't accurately judge whether it is an asset loss deducted from the list, and they can declare the deduction in the form of special declaration. "