Article 5 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Several Issues Concerning the Treatment of Enterprise Income Tax in Enterprise Liquidation Business (Caishui [2009] No.60) stipulates that the realizable value or transaction price of all assets of an enterprise shall be deducted from liquidation expenses, employees' wages, social insurance expenses and statutory compensation to pay off liquidation income tax and taxes owed in previous years. After the debts of the enterprise are paid off, the remaining assets that can be distributed to the owners shall be calculated according to regulations. The remaining assets distributed by the shareholders of the liquidation enterprise are equivalent to the accumulated undistributed profits and accumulated surplus reserves of the liquidation enterprise, which shall be recognized as dividend income; If the balance of the remaining assets after deducting dividends exceeds or is lower than the investment cost of shareholders, it shall be recognized as the gain or loss of shareholders' investment transfer. The assets distributed by the shareholders of the liquidated enterprise from the liquidated enterprise shall be taxed according to the realizable value or the actual transaction price. Article 6 of the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Pre-tax Deduction Policy for Enterprise Asset Loss (Caishui [2009] No.57) stipulates that if an enterprise's equity investment meets one of the following conditions, the unrecoverable equity investment confirmed after deducting the recoverable amount can be deducted as the equity investment loss when calculating the taxable income: (1) The invested unit is declared bankrupt, closed, dissolved or revoked according to law, or its business license is cancelled or revoked according to law. (two) the financial situation of the invested entity has deteriorated seriously, and the accumulated losses are huge, and it has stopped operating for more than 3 years, and there is no plan to resume business restructuring; (3) It has no control over the investee, the investment period expires or the investment period has exceeded 65,438+00 years, and the investee has been operating at a loss for three consecutive years. (4) The financial situation of the invested entity has deteriorated seriously, and the accumulated losses are huge, and the liquidation or liquidation period has been completed for more than 3 years; (five) other conditions stipulated by the competent departments of finance and taxation of the State Council. According to the above provisions, the amount of remaining assets shared by Company A is equivalent to the portion of accumulated undistributed profits and accumulated surplus reserves of Company B calculated according to the shareholding ratio of Company A, which should be recognized as dividend income of Company A; The balance of the remaining assets after deducting dividends, which exceeds or is lower than the investment cost of Company A, is recognized as the gain or loss of investment transfer of Company A. If the equity investment of Company A meets one of the above conditions, the unrecoverable equity investment confirmed after deducting the recoverable amount can be deducted as the loss of equity investment when calculating the taxable income.