Property Losses Should Be Differentiated From Pre Tax Deduction.

(1) loss of credits, such as accounts receivable, other receivables and prepaid accounts, shall provide relevant evidence, such as the bank deposit statement, the court judgment, the bankruptcy liquidation of the other party, the cancellation of the business license by the business sector, the proof of the death of the debtor by the relevant departments of the public security organ and other relevant evidence.

(2) inventory scrap and loss loss should provide the basis for determining the tax cost of the inventory, and the internal business contract relating to the scrapping, damage, deterioration, residual value description and verification of the inventory, and the relevant economic acts, involving the compensation of the responsible person, should be explained in the case of compensation. If the amount of the loss is relatively large, there should be a professional technical appraisal opinion or a special report issued by the intermediary agency.

(3) discarding of fixed assets Loss of damage shall be provided by the relevant data of the tax base of the fixed assets, and the information about the identification and verification of the enterprise's internal liability shall be issued by the relevant departments within the enterprise. Identification materials In respect of liability compensation, there should be a description of the compensation situation. If the cause of damage or discarding of fixed assets is caused by force majeure such as large amount of loss or natural calamity, special technical appraisal opinions or special reports issued by intermediaries with statutory qualifications should be included.

(4) investment losses should be provided equity investment The basic materials for tax payment, including the bankruptcy notice and bankruptcy documents of the invested enterprise, the cancellation and cancellation of the business license document of the invested enterprise, the administrative decision document of the relevant government departments to the invested entity, the legal documents or other proof documents of the investment enterprise terminating the business and stopping the spanaction, and the written statement of investment, loss of interests, and other relevant evidences of the investment enterprise (the legal representative, the principal person in charge and the financial controller) by the assets disposal plan, spanaction and accounting materials of the investment enterprise, the legal representative, the principal person in charge and the financial controller.

It should be noted that in September 23, 2012, the State Council issued the decision on the Sixth Batch of cancellation and adjustment of administrative examination and approval items, abolished and adjusted a total of 314 items of administrative examination and approval, and the examination and approval of the enterprise's deduction of property losses before paying the income tax was included. That is to say, enterprises do not need to report to the Inland Revenue Department for examination and approval when they deal with the relevant treatment before deduction of property losses.