PROVISIONAL REGULATIONS OF THE PEOPLE'S REPUBLIC OF CHINA ON CONTRACT TAX
国税函[1997]388号
颁布日期：19970704 　实施日期：19970704 　颁布单位：国家税务总局

GuoShuiHan [1997] No.388

July 4, 1997

The Request for Instruction on Withdrawing the Reserve of Bad Debts for the Enterprises with the Undertaking of Credit and Leasing when in the Red (HuShuiWai [1997] No.51) has been received and learned.

The opinion in regards is that the enterprises with the undertaking of credit and leasing can be allowed to withdraw the reserve of bad debts for the purpose of balance of the loss of bad debts before taxation during its operation. Therefore, the enterprises can withdraw the reserve of the bad debts whether in red or not with regards to the relevant provisions in the article 25 of the Rules for the Implement of the Income Tax Law on Enterprises with Foreign Investment and Foreign Enterprises and the Circular of the State Administration of Taxation on some Issues Concerning Business Dealing of Income Tax Law on the Enterprises with Foreign Invstment and Foreign Enterprises (GuoShuiFa [1991] No.165).