According to Article 18 of Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2012 No.40): "If the relocation income of an enterprise is negative after deducting the relocation expenses, it is the relocation loss. Relocation losses can be handled in one of the following ways:
(a) when the relocation is completed, it will be deducted as a loss at one time.
(2) It is divided into three years from the year when the relocation is completed, and it is deducted on average before tax.
The above methods are selected by the enterprise itself, but once selected, they shall not be changed. "