How To Handle Tax Related Losses 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.

Housing and building renovation and expansion losses can not be directly

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The notice of the State Administration of Taxation on certain issues concerning enterprise income tax (thirty-fourth of the State Administration of Taxation Announcement No. 2011) stipulates that if an enterprise is to rebuild or expand the fixed assets of buildings and buildings before it is fully extracted, the net value of the original assets minus the depreciation after the depreciation of the assets should be incorporated into the tax cost of the fixed assets after replacement, and the depreciation shall be made in accordance with the depreciation period stipulated in the tax law from the next month after the fixed assets have been put into use.

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.

The basis of tax calculation is tax deduction before depreciation.

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.

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.

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 regulation of the pre tax deduction of enterprise assets loss income tax (eleventh of the Announcement No. twenty-fifth of the State Administration of Taxation) stipulates that the assets loss caused by the cross regional operation of the taxpaying enterprises within the territory of China shall be declared and deducted according to the following stipulations: the loss of assets of the head office and its branches shall be made in accordance with the special declaration and

The relevant provisions of the regulations shall be reported to the local competent tax authorities separately, and the branches should be reported to the head office at the same time. In addition to the other provisions of the tax authorities, the assets loss reported by the head office to the branches should be reported to the local competent tax authorities in the form of declaration of the list. The general agency will bundle up and pfer the assets belonging to the p regional branches to pfer the assets losses incurred, and make the special declaration by the head office to the local competent tax authorities.

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. Headquarters shall declare the tax authorities in Nanjing with the form of declaration forms.

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, and this income should be declared as enterprise income tax in the 2014 year's taxable income.