1. What are the corporate income tax policies related to the deduction of asset losses?
(1) Article 8 of the "Regulations" stipulates that reasonable expenses actually incurred by an enterprise in connection with the acquisition of income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted in the calculation of taxable income, which is the legal provision for the deduction of asset losses.
(2) Article 32 of the "" stipulates that the losses referred to in Article 8 of the Enterprise Income Tax Law refer to the losses caused by force majeure factors such as fixed assets and inventories, losses from transfer of property, losses from bad debts, losses from bad debts, natural disasters and other losses caused by force majeure factors such as fixed assets and inventories incurred by enterprises in production and business activities. The balance of the losses incurred by the enterprise after deducting the compensation of the responsible person and the insurance compensation shall be deducted in accordance with the provisions of the competent financial and taxation departments of the State Council. When the assets that have been treated as losses by an enterprise are fully or partially recovered in the following tax years, they shall be included in the current income. This is a statutory provision for the deduction of loss of assets.
(3) The "Cai Shui [2009] No. 57) defines asset loss. Asset loss refers to the asset loss actually incurred by an enterprise in the course of production and business activities and related to the acquisition of taxable income, including cash loss, deposit loss, bad debt loss, loan loss, equity investment loss, inventory loss, damage, scrapping, theft loss of fixed assets and inventory, losses caused by force majeure factors such as natural disasters and other losses. In addition, the document also details the specific policies for the pre-tax deduction of asset losses.
(4) (Announcement [2011] No. 25 of the State Administration of Taxation) provides detailed provisions on the administrative measures for the pre-tax deduction of income tax on enterprise asset losses. The announcement clarifies the scope of asset losses that can be deducted before tax, including reasonable losses (i.e., actual asset losses) incurred by enterprises when they actually dispose of or transfer assets, as well as losses (i.e., statutory asset losses) that are calculated and recognized in accordance with Cai Shui [2009] No. 57 and the conditions stipulated in the Measures although assets are not actually disposed of or transferred.
(5) The "Announcement No. 3 of 2014 of the State Administration of Taxation" clarifies the issue of pre-tax deduction of inventory losses of commercial retail enterprises.
(6) The "Announcement No. 25 of 2015 of the State Administration of Taxation" clarifies the issue of pre-income tax deduction for losses of agriculture-related loans of financial enterprises and loans to small and medium-sized enterprises.
If the agriculture-related loans and SME loans of financial enterprises are overdue for more than 1 year and cannot be recovered after recourse, the loan losses shall be calculated and confirmed for pre-tax deduction according to the classification certificate of agriculture-related loans and SME loans: (1) If the balance of the single-family loan does not exceed 3 million yuan (including 3 million yuan), the relevant original recourse records to the borrower and the guarantor (including judicial recourse, telephone recourse, One of the original records such as letter recourse and door-to-door recourse, and jointly signed and confirmed by the handler and the person in charge), calculate and confirm the loss for pre-tax deduction. (2) If the balance of a single-family loan exceeds 3 million yuan to 10 million yuan (including 10 million yuan), the loss shall be calculated and confirmed for pre-tax deduction based on the relevant original recourse records (which shall include judicial recourse records and be jointly signed and confirmed by the handler and the person in charge). (3) If the balance of a single-family loan exceeds 10 million yuan, the loss shall still be calculated and recognized in accordance with the relevant provisions of the "Announcement No. 25 of 2011 of the State Administration of Taxation" for pre-tax deduction.
(7) The Announcement No. 15 of 2018 of the State Administration of Taxation clarifies that enterprises are no longer required to submit asset loss information, and at the same time stipulates the requirements for the retention of asset loss information for future reference. The announcement is applicable to the final settlement of enterprise income tax in 2017 and subsequent years.
(8) (Announcement No. 65 [2018] of the State Administration of Taxation), effective as of December 28, 2018. According to the appendix "Catalogue of Cancelled Tax Certification Items", the second special report of the intermediary agency and its related supporting materials originally provided that when an enterprise declares to the tax authorities the loss arising from the transfer of assets to an affiliated enterprise under the arm's length principle, or the loss of creditor's rights arising from the provision of loans or guarantees to an affiliated enterprise, it shall retain the special report issued by the intermediary agency and its relevant supporting materials for future reference. After the cancellation, the handling method is: it will no longer be retained, but will be retained for future reference, and the written statement and relevant materials issued by the taxpayer with the signature and seal of the legal representative, the main person in charge and the person in charge of finance to confirm the relevant losses.
3 professional and technical appraisal opinions (reports) or special reports of intermediaries, originally stipulated that when an enterprise declares and deducts specific losses to the tax authorities, it shall retain the professional and technical appraisal opinions (reports) or special reports issued by legally qualified intermediaries for future reference. After cancellation, the processing method is: no longer retained. It is changed to a written statement issued by the taxpayer for future reference, which is signed and sealed by the legal representative, the main person in charge and the person in charge of finance to confirm the relevant losses.
(9) The Announcement No. 85 [2019] of the Ministry of Finance and the State Administration of Taxation and the Announcement No. 6 of 2021 of the Ministry of Finance and the State Administration of Taxation stipulate that from January 1, 2019, after the risk classification of agriculture-related loans and loans to small and medium-sized enterprises by financial enterprises in accordance with the "(Yin Jian Fa [2007] No. 54), the loan loss reserves accrued in accordance with the following proportions are allowed to be deducted in the calculation of taxable income: 1. Concerned loans, with a provision ratio of 2%; 25% for subordinated loans, 50% for doubtful loans, and 100% for loss-making loans.
The term "agriculture-related loans" mentioned in this announcement refers to the following loans according to the statistics of the "Yin Fa [2007] No. 246): (1) loans to rural households, (2) loans to rural enterprises and various organizations.
The term "loans to rural households" as used in this article refers to all loans granted by financial enterprises to rural households. The judgment of the loan to a rural household shall be based on whether the subject of the loan at the time of loan issuance is a rural household. Rural households refer to households residing in the administrative area of townships (excluding Chengguan Town) for a long time (more than one year), as well as households residing within the administrative villages under the jurisdiction of Chengguan Town for a long time, households whose household registration is not in the local area but have lived in the local area for more than one year, employees of state-owned farms and individual industrial and commercial households in rural areas. Collective households of state-owned economic organs, organizations, schools, enterprises, and institutions located within the administrative area of townships (excluding Chengguan Town) and within the administrative villages under the jurisdiction of Chengguan Town; Rural households are counted as statistical units and can engage in both agricultural and non-agricultural production and operation.
For the purposes of this Article, the term "loans to rural enterprises and various organizations" refers to all loans granted by financial enterprises to enterprises and various organizations registered in rural areas. Rural areas refer to areas other than urban administrative areas of cities at or above the prefecture level and their municipal towns.
The term "SME loans" mentioned in this announcement refers to the loans of financial enterprises to enterprises with annual sales and total assets of no more than 200 million yuan.
The loan loss of qualified agriculture-related loans and loans to small and medium-sized enterprises incurred by financial enterprises shall first be deducted from the loan loss reserve that has been deducted before tax, and the insufficient part can be deducted when calculating the taxable income according to the facts.
(10) Article 1 of the Announcement No. 86 [2019] of the Ministry of Finance and the State Administration of Taxation (Announcement No. 6 [2021] of the Ministry of Finance and the State Administration of Taxation) stipulates that the scope of loan assets that are allowed to withdraw loan loss reserves before tax includes:
1. Loans (including mortgages, pledges, guarantees, credit and other loans);
2. Bank card overdraft, discount, credit advance (including bank acceptance bill advance, letter of credit advance, guarantee advance, etc.), import and export bills, interbank offer, financial lease receivable and other risk assets with loan characteristics;
3. Foreign loans that are re-lented by financial enterprises and bear the responsibility of external repayment, including loans from international financial organizations, loans from foreign buyers, loans from foreign governments, unconditional loans from the Bank for International Cooperation of Japan, and mixed loans from foreign governments.
Article 2 stipulates that the formula for calculating the loan loss reserve allowed by a financial enterprise to be deducted before tax in the current year is as follows:
Loan loss reserve allowed for pre-tax deduction in the current year = Balance of loan assets allowed to draw loan loss reserve at the end of the current year ×1% - Balance of loan loss reserve that has been deducted before tax as of the end of the previous year
If the amount calculated by a financial enterprise according to the above formula is negative, the taxable income of the current year shall be increased accordingly.
Article 3 stipulates that entrusted loans, agency loans, treasury bond investments, dividends receivable, reserves handed over to the central bank, debts and equity stripped by financial enterprises, financial discounts receivable, central bank funds and other assets that do not bear risks and losses, as well as other risk assets other than those listed in Article 1 of this announcement, shall not be withdrawn from loan loss reserves for pre-tax deduction.
Article 4 stipulates that the qualified loan losses incurred by a financial enterprise shall first be deducted from the loan loss reserve that has been deducted before tax, and the insufficient part can be deducted when calculating the taxable income of the current year.
Article 5 stipulates that the pre-tax deduction policy for the loss reserves of agriculture-related loans of financial enterprises and loans for small and medium-sized enterprises shall no longer be subject to the provisions of Articles 1 to 4 of this announcement if it is implemented in accordance with the provisions of the Announcement No. 85 of the Ministry of Finance and the State Administration of Taxation in 2019.
2. What are the losses that an enterprise is allowed to deduct when calculating taxable income?
Article 32 stipulates that the losses referred to in Article 8 of the Enterprise Income Tax Law refer to the losses caused by force majeure factors such as fixed assets and inventories, losses from transfer of property, losses from bad debts, losses from bad debts, natural disasters and other losses caused by force majeure factors such as fixed assets and inventories, losses incurred by enterprises in production and business activities. The balance of the losses incurred by the enterprise after deducting the compensation of the responsible person and the insurance compensation shall be deducted in accordance with the provisions of the competent financial and taxation departments of the State Council. When the assets that have been treated as losses by an enterprise are fully or partially recovered in the following tax years, they shall be included in the current income.
3. What is asset loss, how is asset loss classified, and when is it deducted?
Asset loss refers to the asset loss actually incurred by an enterprise in the course of production and business activities and related to the acquisition of taxable income, including cash loss, deposit loss, bad debt loss, loan loss, equity investment loss, inventory loss, damage, scrapping, theft loss of fixed assets and inventory, losses caused by force majeure factors such as natural disasters and other losses.
The asset losses allowed to be deducted before enterprise income tax are divided into actual asset losses and statutory asset losses in accordance with the principle of enterprise income tax classification management.
The reasonable losses incurred by the enterprise in the process of actually disposing of or transferring the above-mentioned assets are the actual asset losses. The loss of the actual assets of the enterprise shall be declared and deducted in the annual year when it is actually incurred and has been treated as a loss in accounting.
Although the enterprise has not actually disposed of or transferred the above-mentioned assets, the losses calculated and recognized by the enterprise in accordance with the prescribed conditions are statutory asset losses. For the loss of statutory assets, the annual declaration of the asset has met the conditions for recognition of the loss of statutory assets and the loss has been treated in accounting, and the annual tax return of enterprise income tax "Pre-tax Deduction and Tax Adjustment Schedule of Asset Loss" shall be filed for deduction.
Example 1: An enterprise scrapped a batch of fixed assets in August 2022, which has no use value after being identified by the technical department of the enterprise, and the management of the enterprise approves that it will no longer be disposed of, and it will be directly scrapped, and the expenses of the business office will be included in the accounting, and the loss caused by calculating the balance after deducting the estimated net residual value and related compensation from the net book value is the amount of statutory asset loss.
Example 2: If an enterprise transfers fixed assets at fair value, and the debit amount of the asset disposal gain or loss is 500,000 yuan, the loss of 500,000 yuan is the actual asset loss.
4. How to deal with the asset losses incurred by the enterprise in previous years that cannot be accurately calculated and deducted on time in the year of occurrence due to various reasons?
If it is an actual asset loss, it is allowed to be retroactively deducted until the year in which the loss occurs, and the period for recognition of the recovery shall generally not exceed five years; If an enterprise suffers a loss after deducting the losses recognized by retrospective recovery in the year in which the actual asset losses occur, it shall first adjust the amount of losses in the year in which the asset losses occur, and then calculate the overpaid enterprise income tax in the following years according to the principle of making up for losses, and carry out tax treatment in accordance with the methods in the preceding paragraph.
It is a statutory asset loss and should be deducted in the reporting year.
Note: The treatment of overpaid tax can only be the tax of the year of deduction and retrospective recognition, but not tax refund. The treatment of losses incurred after recovery should first adjust the amount of losses in the year in which the asset losses occurred, and then calculate the overpaid enterprise income tax in the following years according to the principle of making up for losses, and the overpaid taxes can only be deducted in the year in which the asset losses are recovered and confirmed.
5. What are the accounting treatment for enterprises to recognize asset losses?
Whether it is an actual asset loss or a statutory asset loss, the pre-tax deduction must be accounted for in addition to being declared in accordance with the law, otherwise, it shall not be deducted before tax. In other words, the accounting treatment of asset loss is a precondition for pre-tax deduction, and it is not allowed to be deducted before tax if the accounting treatment is not carried out, and only if the two conditions of tax declaration and accounting treatment are met at the same time, it can be deducted before tax. On the one hand, the purpose of this treatment is to urge and guide enterprises to align the pre-tax deduction year of asset losses with the accounting treatment year, so as to reduce the difference between tax associations. On the other hand, from the perspective of accounting information disclosure, the conditions for the recognition of asset losses in accounting should be less stringent than those in taxation, and if they are not recognized as losses in accounting, they should not be recognized as losses in taxation.
6. How to declare asset losses for cross-regional aggregate tax paying enterprises?
In view of the implementation of the collection and management measures of "unified calculation, hierarchical management, local prepayment, summary liquidation, and financial adjustment" for cross-regional operation and summary tax payment enterprises, the head office and branch offices are respectively subject to the management of the competent tax authorities where the institutions are located. In addition to reporting the losses incurred by the branch to the local competent tax authority, the losses incurred by the branch shall be reported to the head office, and then the head office shall declare and deduct the losses incurred by the branch office in the form of a list to the local competent tax authority.
7. What information does an enterprise need to submit to declare and deduct asset losses to the tax authorities?
In 2017 and subsequent years, if the enterprise declares the deduction of asset losses to the tax authorities, it only needs to fill in the annual tax return of enterprise income tax "Detailed Statement of Pre-tax Deduction and Tax Adjustment of Asset Losses", and no longer submit relevant information on asset losses. Relevant information shall be retained by the enterprise for future reference.
Enterprises shall keep all the information related to asset loss to ensure the authenticity and legitimacy of the materials. For different types of asset losses, the losses shall be confirmed according to the respective asset loss evidence standards, and the relevant asset evidence materials, accounting materials, tax payment materials and other relevant materials shall be retained for future reference.
8. How to classify the evidence related to the loss of enterprise assets?
The relevant evidence for the recognition of the loss of enterprise assets includes external evidence with legal effect and internal evidence of specific matters.
(1) External evidence with legal effect
External evidence with legal effect refers to the written documents with legal effect related to the loss of the assets of the enterprise issued by the judicial organs, administrative organs, professional and technical appraisal departments, etc., mainly including: 1. Judgments or rulings of judicial organs, 2. Proof of case closure and reply of public security organs, 3. Cancellation issued by industrial and commercial departments, Proof of revocation and suspension of business; 4. Announcement of bankruptcy liquidation or liquidation documents of the enterprise; 5. Official documents of administrative organs; 6. Appraisal reports of professional and technical departments; 7. Economic appraisal certificates of intermediaries with legal qualifications; 8. Arbitration documents of arbitration institutions; 9. Insurance documents such as insurance investigation forms and claim calculation forms issued by insurance companies for insured assets; 10. Other evidence in accordance with legal provisions.
(2) Internal evidence of specific matters
The internal evidence of specific matters refers to the damage to various assets, scrapping, inventory loss, death, The statement of internal proof or responsibility for deterioration mainly includes: 1. Relevant accounting materials and original vouchers; 2. Asset inventory table; 3. Business contracts of relevant economic behaviors; 4. Appraisal documents or materials of the internal technical appraisal department of the enterprise; 5. Internal approval documents and relevant explanations of the enterprise; 6. Explanation of the responsibility and compensation for the losses caused by the responsible person's operation and management responsibilities; 7. Legal representative, A statement that the person in charge of the enterprise and the person in charge of finance of the enterprise bear legal responsibility for the authenticity of a specific matter.
9. What are the types of losses included in the loss of monetary assets of an enterprise, and what are the evidence confirmation materials?
This includes cash losses, bank deposit losses, and losses on receivables and prepayments.
(1) Cash losses shall be confirmed on the basis of the following evidentiary materials: 1. The cash inventory table confirmed by the cash custodian (including the record of being pushed back to the base date); 2. The explanation of the cash custodian on the shortfall and the relevant approval documents; 3. The explanation of the determination of responsibility and compensation for the losses caused by the management responsibility of the responsible person; 4. If a criminal offense is involved, there shall be relevant materials issued by the judicial organ; 5. The certificate of collection of counterfeit currency issued by the financial institution.
(2) The loss of deposit assets incurred by an enterprise due to the liquidation of a financial institution shall be confirmed on the basis of the following evidentiary materials: 1. The original voucher of the enterprise's deposit assets, 2. The legal documents of the bankruptcy and liquidation of the financial institution, and 3. The distribution of the remaining assets after the liquidation of the financial institution.
If a financial institution should be liquidated but has not been liquidated for more than three years, the enterprise may recognize the amount as an asset loss, but it shall have a certificate of incomplete liquidation issued by the court or the bankruptcy liquidation administrator.
(3) Bad debt losses of enterprise receivables and prepayments
1. Confirm on the basis of the following relevant evidentiary materials:
(1) Contracts, agreements or explanations of relevant matters; (2) If it is a bankruptcy liquidation of the debtor, there shall be a bankruptcy or liquidation announcement from the people's court; (3) If it is a litigation case, a judgment or award of the people's court or an arbitration document of an arbitration institution, or a legal document that is ruled by the court to terminate (suspend) the execution; (4) If the debtor ceases business, there shall be a certificate of cancellation or revocation of the business license by the industrial and commercial department; (5) If the debtor dies, (6) In the case of debt restructuring, there shall be a debt restructuring agreement and an explanation of the debtor's tax payment of the proceeds of the restructuring; (7) if it is a natural disaster, war or other force majeure that cannot be recovered, there shall be a description of the debtor's disaster situation and a statement of waiver of creditor's rights.
2. Overdue for more than one year
If the enterprise is overdue for more than one year, and the single amount does not exceed 50,000 yuan or does not exceed 1/10,000 of the total annual income of the enterprise, and the receivables have been treated as losses in accounting, they can be treated as bad debt losses, and the taxpayer shall retain for future reference a written statement issued by the taxpayer with the signature of the legal representative, the main person in charge and the person in charge of finance to confirm the loss.
3. More than three years overdue
If the receivables of an enterprise that are overdue for more than three years have been treated as losses in accounting, they can be treated as bad debt losses, and the taxpayer shall retain for future reference a written statement issued by the taxpayer with the signatures and seals of the legal representative, the main person in charge and the person in charge of finance to confirm the loss.
4. If the enterprise provides guarantees related to the production and operation activities of the enterprise, the guarantor shall bear joint and several liability because the guaranteed party cannot repay the debts on time, and the guarantor is unable to repay after recourse, and the amount that cannot be recovered shall be treated as the loss of receivables.
Guarantees related to the production and operation activities of the enterprise refer to the guarantees provided by the enterprise related to the production and business activities of the enterprise such as taxable income, investment, financing, material procurement, and product sales.
10. What are the contents of the loss of non-monetary assets of an enterprise, and what are the evidence and confirmation materials for each loss?
The loss of non-monetary assets of enterprises includes inventory losses, fixed asset losses, intangible asset losses, construction in progress losses, and losses of productive biological assets.
(1) Inventory loss
1. The balance of the inventory loss after deducting the compensation of the responsible person shall be confirmed on the basis of the following evidentiary materials: (1) the basis for determining the taxable cost of inventory, (2) the relevant internal liability determination, the explanation of the compensation of the responsible person and the internal approval documents, (3) the inventory inventory table, and (4) the explanation of the inventory loss by the inventory custodian.
2. Loss of scrapped, damaged or deteriorated inventory
For the loss of scrapping, damage or deterioration of inventory, the balance of the taxable cost after deducting the salvage value and the compensation of the responsible person shall be confirmed on the basis of the following evidentiary materials: (1) the basis for determining the taxable cost of inventory; (2) the description and write-off information of the scrapping, damage, deterioration and residual value of the inventory within the enterprise; (3) if the compensation of the responsible person is involved, there shall be an explanation of the compensation; (4) the amount of the loss is relatively large (refers to accounting for more than 10% of the taxable cost of the enterprise's such assets, or reducing the taxable income of the current year and increasing the loss by 10%) The above, the same below), the taxpayer shall retain for future reference a written statement issued by the taxpayer with the signature and seal of the legal representative, the main person in charge and the person in charge of finance to confirm the relevant losses.
For example, an enterprise produces and operates fruit and vegetable juice and canned food, of which the canned food is flooded and scrapped, with a taxable cost of 1 million yuan and a year-end inventory of 300 million yuan (including 200 million inventory goods, 90 million raw materials, and 10 million turnover materials). The enterprise divides the inventory into three categories: inventory commodities, raw materials, and turnover materials, among which the canned food that has been flooded and scrapped belongs to the inventory commodity category. The proportion of the loss of canned food scrapped by flooding is 100/20000=0.5%, which does not belong to the large amount of loss.
3. Inventory theft loss
The balance of the taxable cost after deducting the insurance claim and the compensation of the responsible person shall be confirmed on the basis of the following evidentiary materials: (1) the basis for determining the taxable cost of inventory, (2) the report record to the public security organ, and (3) if the compensation is involved between the responsible person and the insurance company, there should be an explanation of the compensation.
(2) Loss of fixed assets
1. Inventory loss and loss of fixed assets
The balance of the inventory loss and loss of fixed assets after deducting the compensation of the responsible person from the net book value shall be confirmed on the basis of the following evidentiary materials: (1) the relevant internal liability identification and verification materials of the enterprise, (2) the inventory table of fixed assets, (3) the relevant information on the tax basis of fixed assets, (4) the explanation of the inventory loss and loss of fixed assets, and (5) if the amount of loss is relatively large, the taxpayer shall retain for future reference a written statement issued by the taxpayer with the signature and seal of the legal representative, the main person in charge and the person in charge of finance to confirm the relevant loss.
2. The balance of the scrapping and damage loss of fixed assets after deducting the salvage value and the compensation of the responsible person from the net book value shall be confirmed according to the following evidentiary materials: (1) the relevant information on the tax basis of the fixed assets; (2) the relevant internal liability identification and verification materials of the enterprise; (3) the appraisal materials issued by the relevant internal departments of the enterprise; (4) if the liability compensation is involved, there shall be an explanation of the compensation situation; (5) the loss amount is relatively large or the fixed assets are damaged due to force majeure reasons such as natural disasters. If it is scrapped, the taxpayer shall keep the written statement and relevant materials issued by the taxpayer for future reference, with the signatures and seals of the legal representative, the main person in charge and the person in charge of finance confirming the loss.
3. Loss of fixed assets stolen
The balance of the stolen loss of fixed assets after deducting the compensation of the responsible person from the net book value shall be confirmed on the basis of the following evidentiary materials: (1) the relevant information on the tax basis of the fixed assets, (2) the report records of the public security organs, and the supporting materials of the public security organs for filing, solving and closing the case; (3) if liability compensation is involved, there shall be a determination of the liability for compensation and an explanation of the compensation situation.
(3) The loss of the suspension and scrapping of the project under construction shall be confirmed on the basis of the following evidentiary materials for the balance of the book value of the investment of the project after deducting the residual value: 1. The basis for determining the book value of the investment of the project; 2. The explanation of the reasons for the suspension of the project and the related reasons; 3. For the project that is suspended or scrapped due to quality reasons and the project that is suspended or scrapped due to natural disasters and accidents, the taxpayer shall retain it for future reference and issue it by itself with a legal representative, The main person in charge and the person in charge of finance sign and seal the written statement and relevant materials confirming the loss.
(4) Loss of engineering materials
The loss of engineering materials can be confirmed in accordance with the provisions of the inventory loss of these measures.
(5) Loss of productive biological assets
1. The balance of the net book value after deducting the compensation of the responsible person shall be confirmed on the basis of the following evidentiary materials: (1) the inventory table of the productive biological assets, (2) the description of the inventory loss of the productive biological assets, and (3) if the amount of the loss of the productive biological assets is relatively large, the taxpayer shall retain for future reference the written statement and relevant materials issued by the taxpayer with the signature and seal of the legal representative, the main person in charge and the person in charge of finance to confirm the loss.
2. The balance of the net book value after deducting the residual value, insurance compensation and compensation of the responsible person shall be confirmed on the basis of the following evidentiary materials: (1) an explanation of the loss, (2) an explanation of the determination of liability and its compensation, and (3) if the amount of loss is relatively large, the taxpayer shall retain for future reference the written statement and relevant materials issued by the taxpayer with the signature and seal of the legal representative, the main person in charge and the person in charge of finance to confirm the loss.
3. The balance of the net book value of the loss of productive biological assets arising from the theft, theft and loss of productive biological assets after deducting insurance compensation and compensation from the responsible person shall be confirmed on the basis of the following evidentiary materials: (1) the report record to the public security organ after the production biological asset is stolen or the supporting materials for the public security organ to file, solve and close the case; (2) the determination of responsibility and the explanation of the compensation situation.
(6) Loss of intangible assets
1. If the enterprise fails to redeem the mortgaged assets on time, and the mortgaged assets are auctioned or sold, and the difference between the net book value and the sale value is greater than the value of the mortgage, it can be recognized as an asset loss, which shall be confirmed according to the following evidentiary materials: (1) mortgage contract or agreement, (2) auction or sale certificate and list, (3) accounting materials and other relevant evidentiary materials.
2. For the loss of intangible assets that have been replaced by other new technologies or have exceeded the legal protection period, have lost their use value and transfer value, and have not been amortized, the following evidence shall be submitted for the record: (1) accounting materials, (2) internal approval documents and relevant information explanations of the enterprise, (3) technical appraisal opinions and written statements signed by the legal representative, main person in charge and financial person in charge of the enterprise confirming that the intangible assets have no use value or transfer value, and (4) documents on the legal protection period of intangible assets.
11. How to classify investment losses and what are the evidence confirmation materials?
Enterprise investment losses include debt investment losses and equity (equity) investment losses.
(1) Losses on creditor's rights investments
The loss of an enterprise's creditor's rights investment shall be confirmed on the basis of the original vouchers, contracts or agreements, accounting materials and other relevant evidentiary materials of the investment. In the following cases, relevant evidence shall also be issued in the case of loss of creditor's rights investment:
1. If the debtor or guarantor is declared bankrupt, closed, dissolved or revoked, has had its business license revoked, is missing or dies in accordance with the law, it shall issue a certificate of asset repayment or estate repayment. If the debtor and the guarantor cannot issue a certificate of asset repayment or estate repayment, and the above matters are more than three years, or the balance of the creditor's rights investment (including credit card overdraft and student loan) is less than 3 million yuan, the corresponding debtor and guarantor bankruptcy, closure and dissolution certificate, revocation document, cancellation certificate or inquiry certificate of the administrative department for industry and commerce, and recourse records shall be issued (including original records such as judicial recourse, telephone recourse, letter recourse and door-to-door recourse);
2. If the debtor suffers from a major natural disaster or accident, and the enterprise fails to recover the creditor's rights after paying off its assets and recovering the guarantor, it shall issue a certificate of major natural disasters or accidents, insurance compensation certificates, asset repayment certificates, etc.;
3. If the debtor bears legal liability and its assets are insufficient to repay the borrowed debts, and there is no other debtor, the court ruling certificate and asset repayment certificate shall be issued;
4. If the debtor and the guarantor are unable to repay the debts due, and the enterprise files a lawsuit or arbitration, the people's court shall issue a ruling document if the debtor and the guarantor have no assets to enforce and the debtor and the guarantor have no assets to enforce, and the people's court rules to terminate or terminate (suspend) the enforcement;
5. If the debtor and the guarantor are unable to repay the debts due, and the lawsuit is rejected after the enterprise files a lawsuit, or the people's court does not accept or support it, or the debtor is exempted (or partially exempted) from liability by the arbitration institution, and the creditor's rights cannot be recovered after recovery, the proof of the court's rejection of the lawsuit, or the court's inadmissibility or non-support, or the arbitration institution's ruling to exempt the debtor from liability, shall be submitted;
6. For creditor's rights that have been approved and written off by the State Council, the approval documents of the State Council or the documents approved by the relevant departments of the State Council with the consent of the State Council shall be provided.
(2) Losses on equity investment of enterprises
It should be confirmed on the basis of the following relevant evidentiary materials: 1. Supporting materials for the tax basis of equity investment; 2. Bankruptcy announcement and bankruptcy liquidation documents of the invested enterprise; 3. Documents of cancellation or revocation of the business license of the invested entity by the administrative department for industry and commerce; 4. Administrative decision documents of the relevant government departments on the investee unit; 5. Legal or other supporting documents for the termination of operation and trading of the invested enterprise; 6. Asset disposal plan, transaction and accounting materials of the invested enterprise; 7. Legal representative of the enterprise, A written statement signed by the principal responsible person and the person in charge of finance confirming the investment (equity) loss;8. Accounting materials and other relevant evidentiary materials. 9. The enterprise entrusts a financial institution to lend to other units, or entrusts other business institutions to carry out financial management, and cannot recover the loan or wealth management money when it expires.
If the above-mentioned invested enterprises are declared bankrupt, closed, dissolved or revoked, their business licenses are revoked, their production and business activities are stopped, they are missing, etc., and they shall issue a certificate of asset repayment or estate repayment. If the above-mentioned matters have been liquidated for more than three years and the liquidation has not been completed, a certificate of bankruptcy, closure, dissolution or revocation or revocation of the invested enterprise shall be issued, as well as an explanation of the reasons for the failure to liquidate.
12. Which equity and debt rights are not allowed to be deducted before tax as losses?
(1) The debtor or guarantor has the ability to repay the enterprise creditor's rights on time and fails to repay them on time;
(2) Violating the provisions of laws and regulations by evading or suspending enterprise creditor's rights in various forms or under various pretexts;
(3) Administrative intervention in the evasion or suspension of enterprise creditor's rights;
(4) the creditor's rights that the enterprise has not recovered from the debtor and the guarantor;
(5) the creditor's rights of the enterprise in which the enterprise has non-business activities;
(6) Other enterprise creditor's rights and equity rights that should not be written off.
13. What are the contents of other asset losses, and how to confirm the losses?
(1) If an enterprise bundles (packages) different types of assets and sells them by auction, inquiry, competitive negotiation, bidding and other market methods, the difference between the sale price and the taxable cost can be regarded as an asset loss and allowed to be declared and deducted before tax, but the asset disposal plan, the basis for the valuation of various assets, the description of the sale process, the sale contract or agreement, the transaction and accounting certificate, the tax basis of the assets and other determination bases shall be issued.
(2) The amount that should be borne by the enterprise due to improper or non-standard operation due to the imperfect internal control system in the normal operation of the enterprise, or the asset loss caused by business innovation but unclear policies and unmatched reasons, can be regarded as asset loss and allowed to be declared and deducted before tax, but the proof of the cause of the loss or the qualitative certificate of the business supervision department and the special explanation of the loss shall be issued.
(3) The amount of losses caused by the enterprise due to the criminal case, or the amount that has not been recovered after more than two years of filing and investigation by the public security organ, may be regarded as asset losses and allowed to be declared and deducted before tax, provided that the public security organ or the people's procuratorate has filed and investigated the case or the judgment of the people's court and other supporting materials for the cause of the loss.
14. How to deduct the losses of agriculture-related loans and small and medium-sized enterprises of financial enterprises before tax?
If the agriculture-related loans and SME loans of financial enterprises are overdue for more than 1 year and cannot be recovered after recourse, the loan losses shall be calculated and confirmed for pre-tax deduction according to the following provisions according to the classification certificate of agriculture-related loans and SME loans:
(1) If the balance of a single-family loan does not exceed 3 million yuan (including 3 million yuan), the loss shall be calculated and confirmed for pre-tax deduction based on the relevant original recourse records from the borrower and the guarantor (including one of the original records such as judicial recourse, telephone recourse, letter recourse and door-to-door recourse, and jointly signed and confirmed by the handler and the person in charge).
(2) If the balance of a single-family loan exceeds 3 million yuan to 10 million yuan (including 10 million yuan), the loss shall be calculated and confirmed for pre-tax deduction based on the relevant original recourse records (which shall include judicial recourse records and be jointly signed and confirmed by the handler and the person in charge).
(3) If the balance of a single-family loan exceeds 10 million yuan, the relevant provisions of the announcement of the State Administration of Taxation on issuing the Administrative Measures for the Pre-tax Deduction of Income Tax on Enterprise Asset Losses (Announcement No. 25 of 2011 of the State Administration of Taxation) shall still be calculated and confirmed for pre-tax deduction.
15. How to fill in the enterprise income tax return for asset loss?
(1) The time of declaration
The actual asset loss of an enterprise shall be declared and deducted in the year when it is actually incurred and the loss has been treated as a loss in accounting, and the loss of statutory assets shall be declared and deducted in the year when there is evidence to prove that the asset has met the conditions for recognition of the loss of statutory assets and has been treated as a loss in accounting.
(2) Retain materials for future reference
The following asset losses shall be declared and deducted to the tax authorities in the form of list declaration: 1. Losses from the sale, transfer and sale of non-monetary assets at fair prices in the normal operation and management activities of the enterprise; 2. Normal wear and tear of the enterprise's inventory; 3. Losses caused by the normal scrapping and liquidation of the fixed assets of the enterprise when they reach or exceed the service life; 4. Asset losses caused by the normal death of the productive biological assets of the enterprise when they reach or exceed the service life; 5. The enterprise shall follow the principle of fair trade in the market through various trading venues, Losses incurred in the trading of bonds, stocks, futures, funds and financial derivatives in the market.
Asset losses other than those mentioned in the preceding article shall be declared and deducted to the tax authorities in the form of special declarations. If an enterprise cannot accurately determine whether it is an asset loss deducted from the list, it can declare the deduction in the form of a special declaration.
Enterprises declaring and deducting asset losses to the tax authorities only need to fill in the annual tax return of enterprise income tax "Detailed Statement of Pre-tax Deduction and Tax Adjustment of Asset Losses", and no longer need to submit relevant information on asset losses. Relevant information shall be retained by the enterprise for future reference.
Enterprises shall keep all the information related to asset loss to ensure the authenticity and legitimacy of the materials.
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