国税函[2004]第90号

颁布日期：20040117 　实施日期：20040101 　颁布单位：国家税务总局

GuoShuiHan [2004] No.90

January 17， 2004

The administrations of state taxation of the provinces， autonomous regions， municipalities directly under the Central Government， and cities directly under State Planning， and the Administration of Local Taxation of Shenzhen Municipality：

According to the information we receive， as a result of the fierce competition of the telecommunication industry and the lack of effective measures for the control and recovery of defaulted fees， the foreign-funded enterprises engaging in telecommunication services have incurred relatively large amounts of fees defaulted by the customers， and the defaulted sums are increasing every year. We hereby notify as follows the relevant issues concerning dealing with the income tax in respect of the abovementioned fees defaulted by customers， which can not be recovered：

1. As of January 1， 2004， where a foreign-funded enterprise engaging in telecommunication industry is unable to recover the fees defaulted by customers， whether previously or newly incurred， after one year as of the date of default， such defaulted sums may be dealt with as the loss of bad debt， but payment for such loss shall be specified in the report form.

2. Where the localities draw the provision for bad debt for telecommunication enterprises in accordance with Paragraph 1 of Article 9 of the Notice of the State Administration of Taxation on Several Operational Issues concerning the Implementation of the Law on Income Tax of Foreign-funded Enterprises and Foreign Enterprises （GuoShuiFa [1991] No.165）， such practice shall be stopped as of January 1， 2004. The balance of the provision for bad debts drawn in the previous year shall be first used to set off the loss of bad debts incurred in 2003. If there is any balance left after the set-off， such balance shall be included into the taxable income of the current year.