How Should We Deal With The Tax Related Loss Of Special Assets?

The treatment of assets loss is a difficult point in the treatment of enterprise income tax.

Some taxpayers are unable to master the policy and cause unnecessary trouble.

The author summarizes several special cases of asset loss as follows.

Assets loss not related to production or operation shall not be deducted before tax.

Wang, a shareholder of a business enterprise and a shareholder of a catering company, is a good friend.

In 2013, the business enterprise secured the bank loan of catering enterprises.

Due to insolvency, the food and beverage enterprises were sued for bankruptcy by the bank, and the commercial enterprises were required to repay bank loans because of the guarantee relationship.

The policy stipulates that a creditor's right to a non business activity shall not be deducted as a loss before tax.

The guarantee loss of the enterprise is formed by the individual factors of the shareholders, and has nothing to do with the production and operation of the enterprise, and it can not be deducted before tax.

The abnormal loss of inventory is stipulated in the pre tax deduction of the VAT input tax.

The Circular of the Ministry of Finance and the State Administration of Taxation on the pre Tax Deduction Policy for enterprise assets loss (fiscal tenth [2009] 57) stipulates that the tax deductible from the tax on value-added tax due to inventory losses, damage, scrapping, theft and other reasons can be deducted together with the inventory loss when calculating the taxable income.

To this end, the loss of inventory caused by natural disasters and other abnormal losses should not be pferred out of the VAT input tax.

Cross regional operation to collect tax assets loss.

A company headquartered in Nanjing, in Beijing, Shanghai, Guangzhou has 3 branches, Guangzhou in 2013, 1 million 500 thousand yuan of assets loss.

The eleventh provision of the pre tax deduction for loss of income tax (state tax administration Bulletin No. 2011, twenty-fifth) stipulates that the loss of assets incurred by the taxpaying enterprises operating across the territory in China should be declared and deducted according to the following stipulations: the loss of assets incurred by the head office and its branches shall be reported to the local competent tax authorities separately in accordance with the relevant provisions of the special declaration and declaration, and the branches should also be reported to the head office. The assets loss reported by the head office to the branches should be reported to the local competent tax authorities in addition to the tax authorities. The general agency will bundle up the assets of the p regional branches and pfer the assets losses incurred, and make the special declaration by the head office to the local competent tax authorities. Enterprise assets

To this end, the Guangzhou branch shall report to the competent tax authorities in Guangzhou and submit it to the headquarters at the same time. The headquarters shall carry out the form of declaration to the competent tax authorities in Nanjing.

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The stock loss of cultural enterprises is pre tax deductible.

The notice of "pforming the operational cultural institutions into enterprises and further supporting the development of cultural enterprises" is issued in the "cultural system reform" (No. 15 of the State Office [2014]), which is clearly plated into the publishing and issuing units of the enterprises. When the system is pformed, assets can be disposed of in accordance with the provisions of the publications which are to be scrapped by their inventory backlog. The recognized losses can be deducted in the net assets. The loss of the publication and distribution units in handling the inventory of dull publications is allowed to be deducted according to the actual enterprise income tax. Two

For example, a Xinhua Bookstore bought a batch of audio-visual products in January 2012. In June 2014, there were still 120 thousand yuan worth of audio and video products, which were unsalable.

In September 2014, the bookstore disposed of 65 thousand yuan of unmarketable audio and video products, which should be declared and paid as taxable income in 2014.

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Housing and building renovation and expansion losses can not be deducted directly before tax.

The Circular of the State Administration of Taxation on certain issues concerning enterprise income tax (the thirty-fourth announcement of the State Administration of Taxation on 2011) stipulates that an enterprise's expansion of the fixed assets of buildings and buildings before the depreciation is fully extracted, if it belongs to the reversion of the assets, the net value after the original value of the assets is deducted from the depreciation shall be incorporated into the fixed assets after the replacement is replaced by the fixed assets of the State Administration of Taxation ().

And after the fixed assets are put into use, the depreciation shall be calculated in accordance with the depreciation period stipulated in the tax law.

If it belongs to the upgrading function and the area increased, the fixed assets expansion and expenditure will be incorporated into the fixed assets tax base, and from the next month after the completion of the extension and completion of the fixed assets, the depreciation period of the fixed assets will be depreciated according to the tax law. If the fixed assets of the extension and expansion can still be used less than the minimum years stipulated in the tax law, depreciation can be made according to the useful life.

The above stipulates that the assets loss of housing and building fixed assets before expansion and depreciation before the depreciation can not be deducted directly before tax, but is included in the tax base of fixed assets after the extension and expansion, and the tax deduction is made by way of depreciation.