A: According to State Taxation Administration of The People's Republic of China's release
Measures for the Administration of Pre-tax Deduction of Enterprise Asset Loss Income Tax
Announcement "(State Taxation Administration of The People's Republic of China Announcement No.2011No.25), the provisions of Article 23 and Article 24, if the accounts receivable overdue for one year or more have been treated as losses in accounting, they can be regarded as bad debt losses, but the situation should be explained and a special report should be issued.
However, the special report does not stipulate that it must be issued by an intermediary. Therefore, the above-mentioned special report can be issued by the enterprise itself, not necessarily by an intermediary agency, if the bad debt loss has been dealt with and there is no special requirement from the competent tax authorities.
It should be noted that if the following assets loss expenses occur in the enterprise, a special report issued by an intermediary agency with corresponding qualifications is required to explain:
"State Taxation Administration of The People's Republic of China on the release
Measures for the Administration of Pre-tax Deduction of Enterprise Asset Loss Income Tax
Announcement of "(State Taxation Administration of The People's Republic of China Announcement No.2011No.25)
Twenty-seventh inventory scrap, damage or deterioration losses, the balance of the taxable cost after deducting the residual value and the compensation of the responsible person, should be confirmed according to the following evidence:
(4) If the amount of the loss is relatively large (it refers to accounting for more than 10% of the taxable cost of such assets of the enterprise, or reducing the taxable income of the current year and increasing the loss by more than 10%, the same below), there should be professional technical appraisal opinions or special reports issued by legally qualified intermediaries.
Twenty-ninth fixed assets inventory loss, loss, the balance of its net book value after deducting the compensation of the responsible person, should be confirmed according to the following evidence:
(five) if the loss amount is large, there should be a professional technical appraisal report or a special report issued by a legally qualified intermediary agency.
Article 45 Losses incurred by an enterprise in transferring assets to affiliated enterprises according to the principle of independent transaction, or losses of creditor's rights caused by providing loans and guarantees to affiliated enterprises, are allowed to be deducted, but the enterprise shall make a special explanation, and at the same time issue a special report issued by an intermediary agency and relevant supporting materials.