After the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Policy of Pre-tax Deduction of Enterprise Asset Losses (Caishui [2009] No.57) was issued, State Taxation Administration of The People's Republic of China issued the Administrative Measures on Pre-tax Deduction of Enterprise Asset Losses (hereinafter referred to as the Administrative Measures) (Guo Shui Fa [2009] No.88), which clarified the implementation details of pre-tax deduction of enterprise asset losses. And it is stipulated that it will be implemented from 2008 1 month 1 day. Since then, the "Enterprise Income Tax Law of the People's Republic of China" and its supporting laws and regulations have been formulated, and enterprises have a definite basis for the scope of asset loss confirmation and specific reporting procedures and regulations.
The term "assets" as mentioned in the Administrative Measures refers to the assets owned or controlled by enterprises, which are used for business management activities and related to obtaining taxable income. According to the nature of assets, asset losses are divided into the following three categories:
1, loss of monetary assets, including loss of assets such as cash, bank deposits, receivables and prepayments (including bills receivable);
2. Loss of non-monetary assets, including loss of inventory, fixed assets, projects under construction and productive biological assets;
3. Loss of creditor's rights investment and equity investment.
The "Administrative Measures" specifically stipulate that the above-mentioned asset losses incurred by enterprises shall be declared and deducted in the year when they are actually confirmed or actually occurred according to tax regulations, and shall not be deducted in advance or later.
If the loss of assets cannot be accurately calculated and deducted on schedule in the year of occurrence due to various reasons, the pre-tax deduction in the year of loss can be retroactively confirmed after approval by the tax authorities, and the income tax payable in the year of asset loss can be adjusted accordingly. The overpaid tax calculated after adjustment should be refunded in accordance with the relevant regulations, or offset against the current tax payable by the enterprise, so that enterprises that have completed the final settlement of enterprise income tax in 2008 or have not reported the loss of assets in the final settlement period can have a reassurance.
The Administrative Measures specifically supplemented the implementation of Caishui [2009] No.57 in terms of approval of pre-tax deduction of asset losses, confirmation evidence of asset losses, identification of monetary asset losses, identification of non-monetary asset losses, identification of investment losses, and responsibilities.
I. Examination and approval of pre-tax deduction of asset losses
According to the tax management mode, the actual asset loss of an enterprise can be divided into asset loss calculated by itself and asset loss that can only be deducted after approval by the tax authorities.
According to the provisions of the Administrative Measures, the asset losses calculated and deducted by the enterprise itself include six items: first, the asset losses incurred by the enterprise due to the sale, transfer and sale of fixed assets, productive biological assets and inventories in the normal operation and management activities; Second, the normal loss of various inventories of enterprises; Third, the fixed assets of enterprises reach or exceed the service life and are normally scrapped and cleaned up; The fourth is the loss of assets caused by the normal death of productive biological assets of enterprises when they reach or exceed the service life; Fifth, the losses incurred by enterprises in buying and selling bonds, stocks, funds and financial derivatives through securities exchanges and inter-bank markets in accordance with relevant regulations; Sixth, other assets losses confirmed by State Taxation Administration of The People's Republic of China that do not need to be approved by the tax authorities.
The "Administrative Measures" emphasize that asset losses beyond the above provisions are asset losses that can only be deducted after approval by the tax authorities.
The tax authorities' examination and approval of the pre-tax deduction of enterprise assets losses is a compliance review of the declaration materials provided by taxpayers in accordance with the regulations and legal conditions. Therefore, the tax authorities' examination and approval of the enterprise's application for pre-tax deduction of asset losses does not change the enterprise's legal reporting responsibility. If the enterprise overstates the asset losses by forging or altering relevant information and certificates, or if the tax is underpaid due to the direct pre-tax deduction of asset losses that requires examination and approval as stipulated in these Measures, the tax authorities will deal with it according to the relevant provisions of the Law of the People's Republic of China on Tax Collection and Administration.
The pre-tax deduction of enterprise assets losses is not subject to examination and approval at different levels, and the enterprise may directly apply to the tax authorities with the right to examine and approve.
There are three main examination and approval authorities. First, the loss of assets caused by the decision of the State Council shall be reported to the provincial tax authorities for examination and approval after the specific examination and approval items of asset losses are stipulated by State Taxation Administration of The People's Republic of China; Second, the loss of other assets shall be examined and approved according to the principle of territoriality, and the provincial tax authorities under the jurisdiction of the place where the enterprise is located shall appropriately divide the examination and approval authority according to factors such as the amount of loss and the area involved in the evidence; Third, the losses incurred by the enterprise in bundling assets shall be examined and approved by the tax authorities where the head office of the enterprise is located. The provincial tax authorities are responsible for the examination and approval, within 30 working days from the date of acceptance; If the tax authorities below the provincial level are responsible for examination and approval, the time limit for examination and approval shall be determined by the provincial tax authorities, but the time limit for examination and approval shall not exceed the time limit for examination and approval by the provincial tax authorities.
Second, the asset loss confirmation evidence
The "Administrative Measures" specifically reminds that if an enterprise has asset losses calculated and deducted by itself, it should do a good job in confirming the asset losses in accordance with the requirements of internal management control of the enterprise, and keep relevant asset accounting materials, original vouchers and internal approval certificates for daily inspection by the tax authorities.
When an enterprise submits an application for pre-tax deduction of asset losses to the tax authorities in accordance with regulations, it shall provide legal evidence that can prove that asset losses have actually occurred, including: external evidence with legal effect and internal evidence of specific matters.
1, the external evidence with legal effect mainly includes: (1) the judgment or ruling of the judicial organ; (two) the public security organ's case closing certificate and reply; (3) the cancellation, revocation and suspension certificate issued by the industrial and commercial department; (four) the bankruptcy liquidation notice or liquidation documents of the enterprise; (5) Official documents of administrative organs; (six) the appraisal report of the state and the authorized professional technical appraisal department; (seven) the economic appraisal certificate of the intermediary institution with legal qualification; (eight) arbitration documents of economic arbitration institutions; (9) The insurance company's accident investigation sheet and claim calculation sheet for the insured assets; (ten) other evidence that meets the legal conditions.
2. The internal evidence of specific matters mainly includes: (1) relevant accounting data and original vouchers; (2) An inventory of assets; (3) Business contracts related to economic activities; (four) the appraisal documents or materials of the internal technical appraisal department of the enterprise (for the assets loss projects with large amount and great influence, experts in the industry should be invited to participate in the appraisal and demonstration); (five) the internal approval documents of the enterprise and the relevant information; (six) the responsibility identification and compensation for the losses caused by the responsible person due to the management responsibility; (seven) the legal representative, the person in charge of the enterprise and the person in charge of the financial affairs of the enterprise shall bear the legal responsibility for the authenticity of the specific matters.
Three, the specific problems that need to be paid attention to in the identification of asset losses
1. The asset loss of an enterprise should be based on accounting treatment. For example, the enterprise has made the responsibility determination and approval treatment instructions from the management according to the requirements of internal control and financial management procedures, and the asset loss has been transferred to "pending asset profit and loss" or "non-operating expenditure".
2. The identification of enterprise assets loss must have external evidence with legal effect and internal evidence of specific matters, and the scope and content of the evidence should be sufficient and relevant.
3, pay attention to the enterprise due to inventory shortage, damage, scrap, theft and other reasons can not be deducted from the VAT output tax account transfer processing.
4. Equity (equity) investment of an enterprise When there is conclusive evidence that asset losses have been formed, the responsible person and insurance indemnity, incomings or recoverable amount shall be deducted before the asset losses are confirmed.
The recoverable amount is tentatively set at 5% of the book balance.
5. The loan guarantee provided by the enterprise for other independent taxpayers that has nothing to do with the taxable income of the enterprise, and the principal and interest borne by the guarantor due to the unpaid loan by the guarantor, etc., shall not be declared and deducted.
6. The following equity and creditor's rights shall not be recognized as losses deducted before enterprise income tax:
(a) the debtor or guarantor has the financial ability to repay, and for whatever reason, it fails to repay the enterprise's creditor's rights on time;
(two) in violation of the provisions of laws and regulations, in various forms and excuses to escape or suspend the creditor's rights of enterprises;
(three) administrative intervention to evade or suspend the creditor's rights of enterprises;
(four) the creditor's rights that the enterprise has not recovered from the debtor and guarantor;
(five) the creditor's rights of the enterprise in non-business activities;
(6) Losses incurred by enterprises that are not allowed to engage in loan business as stipulated by the state due to direct borrowing of funds;
(seven) other enterprise creditor's rights and equity that should not be written off.
Finally, the Administrative Measures emphasized that when the tax authorities conduct tax inspection on the asset losses declared and deducted by enterprises themselves, they should review the authenticity, legality and rationality of the relevant evidence according to the principle that substance is more important than form. For the pre-tax deduction caused by untrue, illegal or unreasonable evidence or estimation with conclusive evidence, tax adjustment should be made according to law, and the responsibilities should be distinguished according to different situations, and taxpayers and relevant responsible persons should be punished according to regulations.