《企业财产损失所得税前扣除管理办法》已经2005年6月3日第4次局务会议审议通过，现予发布，自2005年9月1日起施行。

国家税务总局局长：谢旭人
二00五年八月九日

企业财产损失所得税前扣除管理办法

第一章　总则

第一条　为进一步规范和完善企业财产损失所得税前扣除的管理，促进企业所得税管理的精细化，根据《中华人民共和国税收征收管理法》及其实施细则、《中华人民共和国企业所得税暂行条例》及其实施细则的有关规定，制定本办法。

第二条　本办法所称财产是指企业拥有或者控制的、用于经营管理活动且与取得应纳税所得有关的资产，包括现金、银行存款、应收及预付款项（包括应收票据）、存货、投资（包括委托贷款、委托理财）、固定资产、无形资产（不包括商誉）和其他资产。

第三条　企业的各项财产损失，按财产的性质分为货币资金损失、坏账损失、存货损失、投资转让或清算损失、固定资产损失、在建工程和工程物资损失、无形资产损失和其他资产损失；按申报扣除程序分为自行申报扣除财产损失和经审批扣除财产损失；按损失原因分为正常损失（包括正常转让、报废、清理等）、非正常损失（包括因战争、自然灾害等不可抗力造成损失，因人为管理责任毁损、被盗造成损失，政策因素造成损失等）、发生改组等评估损失和永久实质性损害。

第四条　企业的各项财产损失，应在损失发生当年申报扣除，不得提前或延后。非因计算错误或其他客观原因，企业未及时申报的财产损失，逾期不得扣除。按本办法规定须经有关税务机关审批的，应按规定时间和程序及时申报。因税务机关的原因导致财产损失未能按期扣除的，经税务机关批准后，应调整该财产损失发生年度的纳税申报表，重新计算应纳所得税额。调整后的应纳所得税额如小于调整前的应纳所得税额，应将财产损失发生年度多缴的税款按照有关规定予以退税、抵缴欠税或下期应缴税款，不得改变财产损失所属纳税年度。

第五条　企业已申报扣除的财产损失又获得价值恢复或补偿，应在价值恢复或实际取得补偿年度并入应纳税所得。因债权人原因确实无法支付的应付账款，包括超过三年以上未支付的应付账款，如果债权人已按本办法规定确认损失并在税前扣除的，应并入当期应纳税所得依法缴纳企业所得税。

第二章　税前扣除财产损失的审批

第六条　企业在经营管理活动中因销售、转让、变卖资产发生的财产损失，各项存货发生的正常损耗以及固定资产达到或超过使用年限而正常报废清理发生的财产损失，应在有关财产损失实际发生当期申报扣除。

第七条　企业因下列原因发生的财产损失，须经税务机关审批才能在申报企业所得税时扣除：

（1）因自然灾害、战争等政治事件等不可抗力或者人为管理责任，导致现金、银行存款、存货、短期投资、固定资产的损失；

（2）应收、预付账款发生的坏账损失；

（3）金融企业的呆账损失；

（4）存货、固定资产、无形资产、长期投资因发生永久或实质性损害而确认的财产损失；

（5）因被投资方解散、清算等发生的投资损失；

（6）按规定可以税前扣除的各项资产评估损失；

（7）因政府规划搬迁、征用等发生的财产损失；

（8）国家规定允许从事信贷业务之外的企业间的直接借款损失。

第八条　企业财产损失税前扣除审批是对纳税人按规定提供的申报资料与法定条件的相关性进行的符合性审查。负责审批的税务机关需要对申报材料的内容进行核实的，应当指派两名以上工作人员进行核查。因财产损失数额较大、外部合法证据不充分等原因，实地核查工作量大、耗时长的，可委托企业所在地县（区）级税务机关具体组织实施。税务机关可对经批准税前扣除的财产损失的真实性进行检查。

第九条　企业的财产损失税前扣除，原则上由企业所在地县（区）级主管税务机关负责。省、自治区、直辖市和计划单列市税务机关（以下简称省级税务机关）可以根据财产损失金额的大小适当划分审批权限。因政府规划搬迁、征用等发生的财产损失由该级政府所在地税务机关的上一级税务机关审批。

第十条　企业财产损失税前扣除不得实行层层审批，企业可向所在地县（区）级主管税务机关申请，也可直接向省级税务机关规定的负责审批的税务机关申请。

第十一条　各级税务机关对企业税前扣除的财产损失申请的受理和审批，除听证和公示外，应比照《国家税务总局关于实施税务行政许可若干问题的通知》（国税发[2004]73号）有关规定执行。

第十二条　县（区）级税务机关负责审批的，必须自受理之日起二十个工作日做出审批决定；市（地）级税务机关负责审批的，必须自受理之日起三十个工作日内做出审批决定；省级税务机关负责审批的，必须自受理之日起六十个工作日内做出审批决定。因情况复杂需要核实，在规定期限内不能做出决定的，经本级税务机关负责人批准，可以延长十天，并将延长期限的理由告知纳税人。

第十三条　企业发生的各项需审批的财产损失应在纳税年度终了后15日内集中一次报税务机关审批。企业发生自然灾害、永久或实质性损害需要现场取证的，应在证据保留期间及时申报审批，也可在年度终了后集中申报审批，但必须出据中介机构、国家及授权专业技术鉴定部门等的鉴定材料。

第十四条　企业税前扣除财产损失的审批采取谁审批、谁负责的制度，各级税务机关应将财产损失审批纳入岗位责任制考核体系，根据本办法的要求，规范程序，明确责任，建立健全监督制约机制和责任追究制度。

第三章　财产损失认定的证据

第十五条　企业申报扣除各项资产损失时，均应提供能够证明资产损失确属已实际发生的合法证据，包括：具有法律效力的外部证据、具有法定资质的中介机构的经济鉴证证明和特定事项的企业内部证据。

第十六条　具有法律效力的外部证据，是指司法机关、公安机关、行政机关、专业技术鉴定部门等依法出具的与本企业资产损失相关的具有法律效力的书面文件，主要包括：

（一）司法机关的判决或者裁定；

（二）公安机关的立案结案证明、回复；

（三）工商部门出具的注销、吊销及停业证明；

（四）企业的破产清算公告或清偿文件；

（五）政府部门的公文及明令禁止的文件；

（六）国家及授权专业技术鉴定部门的鉴定报告；

（七）保险公司对投保资产出具的出险调查单，理赔计算单等；

（八）符合法律条件的其他证据。

第十七条　中介机构的经济鉴证证明，是指税务师事务所等具有法定资质的社会中介机构按照独立、客观、公正原则，在充分调查研究、论证和计算基础上，进行职业推断和客观评判，对企业某项经济事项发表的专项经济鉴证证明或鉴定意见书。

第十八条　企业会计核算制度健全，内部控制制度完善的，可以特定事项的内部证据作为资产损失的认定证据。特定事项的企业内部证据，是指本企业对各项资产发生毁损、报废、盘亏等内部证明或承担责任的申明，主要包括：

（一）会计核算有关资料和原始凭证；

（二）资产盘点表；

（三）相关经济行为的业务合同；

（四）企业内部技术鉴定部门的鉴定文件或资料（数额较大、影响较大的资产损失项目，应聘请行业内专家参加鉴定和论证）；

（五）企业内部核批文件及有关情况说明；

（六）由于经营管理责任造成的损失，要有对责任人的责任认定及赔偿情况说明；

（七）法定代表人、企业负责人和企业财务负责人对特定事项真实性承担税收法律责任的申明。

第四章　货币资产损失的认定

第十九条　企业清查出的现金短缺，将现金短缺数额扣除责任人赔偿后的余额，确认为损失。现金损失确认应提供以下证据：

（一）现金保管人确认的现金盘点表（包括倒推至基准日的记录）；

（二）现金保管人对于短款的说明及相关核准文件；

（三）由于管理责任造成的，应当有对责任认定及赔偿情况的说明；

（四）涉及刑事犯罪的应当提供有关司法涉案材料。

第二十条　企业应收、预付账款发生的坏账损失申请税前扣除必须符合下列条件之一：

（一）债务人被依法宣告破产、撤销（包括被政府责令关闭）、吊销工商营业执照、死亡、失踪，其剩余财产或遗产确实不足清偿；

（二）债务人逾期三年以上未清偿且有确凿证明表明已无力清偿债务；

（三）符合条件的债务重组形成的坏账；

（四）因自然灾害、战争及国际政治事件等不可抗力因素影响，确实无法收回的应收款项。

第二十一条　本办法第二十条所述情形中债务人已经清算的，应当扣除债务人清算财产实际清偿的部分后，对不能收回的款项，认定为损失。

对尚未清算的，由中介机构进行职业推断和客观评判后出具经济鉴证证明，对确实不能收回的部分认定为损失。

债务人已失踪、死亡的应收账款，在取得公安机关已失踪、死亡的证明后，确定其遗产不足清偿部分或无法找到承债人追偿债务的，由中介机构进行职业推断和客观评判后出具经济鉴证证明，对确实不能收回的部分，认定为损失。

因自然灾害、战争及国际政治事件等不可抗力因素影响，对确实无法收回的应收款项，由企业作出专项说明，经中介机构进行职业推断和客观评判后出具经济鉴证证明，或者取得中国驻外使（领）馆出具的有关证明后，对确实不能收回的部分，认定为损失。

逾期不能收回的应收款项，有败诉的法院判决书、裁决书，或者胜诉但无法执行或债务人无偿债能力被法院裁定终（中）止执行的，依据法院判决、裁定或终（中）止执行的法律文书，认定为损失。

在逾期不能收回的应收款项中，单笔数额较小、不足以弥补清收成本的，由企业作出专项说明，经中介机构进行职业推断和客观评判后出具经济鉴证证明，对确实不能收回的部分，认定为损失。

逾期三年以上的应收款项，企业有依法催收磋商记录，确认债务人已资不抵债、连续三年亏损或连续停止经营三年以上的，并能认定三年内没有任何业务往来，中介机构进行职业推断和客观评判后出具经济鉴证证明，认定为损失。

逾期三年以上的应收款项，债务人在境外及港、澳、台地区的，经依法催收仍不能收回的，在取得境外中介机构出具的有关证明，或者取得中国驻外使（领）馆出具的有关证明后，认定为损失。

第二十二条　企业应收、预付账款发生上述情况申请坏账损失税前扣除应提供下列依据：

（一）法院的破产公告和破产清算的清偿文件；

（二）工商部门的注销、吊销证明；

（三）政府部门有关撤销、责令关闭等的行政决定文件；

（四）公安等有关部门的死亡、失踪证明；

（五）逾期三年以上及已无力清偿债务的确凿证明；

（六）债权人债务重组协议、法院判决、国有企业债转股批准文件；

（七）与关联方的往来账款必须有法院判决或所在地主管税务机关证明。

第五章　非货币性资产损失的认定

第二十三条　企业存货发生的损失包括有关商品、产成品、半成品、在产品以及各类材料、燃料、包装物、低值易耗品等发生的盘亏、变质、淘汰、毁损、报废、被盗等造成的净损失。

第二十四条　对盘亏的存货，扣除责任人赔偿后的余额部分，依据下列证据认定损失：

（一）存货盘点表；

（二）中介机构的经济鉴证证明；

（三）存货保管人对于盘亏的情况说明；

（四）盘亏存货的价值确定依据（包括相关入库手续、相同相近存货采购发票价格或其他确定依据）；

（五）企业内部有关责任认定、责任人赔偿说明和内部核批文件。

第二十五条　对报废、毁损的存货，其账面价值扣除残值及保险赔偿或责任赔偿后的余额部分，依据下列证据认定损失：

（一）单项或批量金额较小的存货由企业内部有关技术部门出具技术鉴定证明；

（二）单项或批量金额较大的存货，应取得国家有关技术部门或具有技术鉴定资格的中介机构出具的技术鉴定证明；

（三）涉及保险索赔的，应当有保险公司理赔情况说明；

（四）企业内部关于存货报废、毁损情况说明及审批文件；

（五）残值情况说明；

（六）企业内部有关责任认定、责任赔偿说明和内部核批文件。

第二十六条　对被盗的存货，其账面价值扣除保险理赔以及责任赔偿后的余额部分，依据下列证据认定损失：

（一）向公安机关的报案记录，公安机关立案、破案和结案的证明材料；

（二）涉及责任人的责任认定及赔偿情况说明；

（三）涉及保险索赔的，应当有保险公司理赔情况说明。

第二十七条　固定资产损失包括企业房屋建筑物、机器设备、运输设备、工具器具等发生盘亏、淘汰、毁损、报废、丢失、被盗等造成的净损失。

第二十八条　对盘亏的固定资产，其账面净值扣除责任人赔偿后的余额部分，依据下列证据确认损失：

（一）固定资产盘点表；

（二）盘亏情况说明，单项或批量金额较大的固定资产盘亏，企业应逐项作出专项说明，由中介机构进行职业推断和客观评判后出具经济鉴证证明；

（三）企业内部有关责任认定和内部核准文件等。

第二十九条　对报废、毁损的固定资产，其账面净值扣除残值、保险赔偿和责任人赔偿后的余额部分，依据下列证据认定损失：

（一）企业内部有关部门出具的鉴定证明；

（二）单项或批量金额较大的固定资产报废、毁损，企业应逐项作出专项说明，并委托有技术鉴定资格的机构进行鉴定，出具鉴定说明；

（三）不可抗力原因（自然灾害、意外事故、战争等）造成固定资产毁损、报废的，应当有相关职能部门出具的鉴定报告，如消防部门出具受灾证明，公安部门出具的事故现场处理报告、车辆报损证明，房管部门的房屋拆除证明，锅炉、电梯等安检部门的检验报告等；

（四）企业固定资产报废、毁损情况说明及内部核批文件；

（五）涉及保险索赔的，应当有保险公司理赔情况说明。

第三十条　对被盗的固定资产，其账面净值扣除保险理赔以及责任赔偿后的余额部分，依据下列证据认定损失：

（一）向公安机关的报案记录，公安机关立案、破案和结案的证明材料；

（二）涉及责任人的责任认定及赔偿情况说明；

（三）涉及保险索赔的，应当有保险公司理赔情况说明。

第三十一条　在建工程和工程物资损失包括企业已经发生的因停建、废弃和报废、拆除在建工程项目以及因此而引起的相应工程物资报废或削价处理等发生的损失。

第三十二条　因停建、废弃和报废、拆除的在建工程，其账面价值扣除残值后的余额部分，依据下列证据认定损失：

（一）国家明令停建项目的文件；

（二）有关政府部门出具的工程停建、拆除文件；

（三）企业对报废、废弃的在建工程项目出具的鉴定意见和原因说明及核批文件，单项数额较大的在建工程项目报废，应当有行业专家参与的技术鉴定意见；

（四）工程项目实际投资额的确定依据。

第三十三条　由于自然灾害和意外事故毁损的在建工程，其账面价值扣除残值、保险赔偿及责任赔偿后的余额部分，依据下列证据认定损失：

（一）有关自然灾害或者意外事故证明；

（二）涉及保险索赔的，应当有保险理赔说明；

（三）企业内部有关责任认定、责任人赔偿说明和核准文件。

第三十四条　工程物资发生损失的，比照本办法存货损失的规定进行认定。

第六章　资产永久或实质性损害的认定

第三十五条　存货出现以下一项或若干项情形时，应当确认为发生永久或实质性损害：

（一）已霉烂变质；

（二）已过期且无转让价值；

（三）经营中已不再需要，并且已无使用价值和转让价值；

（四）其他足以证明已无使用价值和转让价值。

第三十六条　固定资产出现下列情形之一时，应当确认为发生永久或实质性损害：

（一）长期闲置不用，且已无转让价值；

（二）由于技术进步原因，已经不可使用；

（三）已遭毁损，不再具有使用价值和转让价值；

（四）因本身原因，使用后导致企业产生大量不合格品；

（五）其他实质上已经不能再给企业带来经济利益。

第三十七条　无形资产出现以下一项或若干项情形时，应当确认为发生永久或实质性损害：

（一）已被其他新技术所替代，且已无使用价值和转让价值；

（二）已超过法律保护期限，且已不能为企业带来经济利益；

（三）其他足以证明已经丧失使用价值和转让价值。

第三十八条　投资出现以下一项或若干项情形时，应当确认为发生永久或实质性损害：

（一）被投资方已依法宣告破产、撤销、关闭或被注销、吊销工商营业执照；

（二）被投资方财务状况严重恶化，累计发生巨额亏损，已连续停止经营三年以上，且无重新恢复经营的改组计划等；

（三）被投资方财务状况严重恶化，累计发生巨额亏损，被投资方的股票从证券交易市场摘牌，停止交易一年或一年以上。

（四）被投资方财务状况严重恶化，累计发生巨额亏损，已进行清算。

第三十九条　企业的存货、固定资产、无形资产和投资当有确凿证据表明已形成财产损失或者已发生永久或实质性损害时，应扣除变价收入、可收回金额以及责任和保险赔款后，再确认发生的财产损失。

可收回金额可以由中介机构评估确定。未经中介机构评估的，固定资产和长期投资的可收回金额一律暂定为账面余额的5%；存货为账面价值的1%.已按永久或实质性损害确认财产损失的各项资产必须保留会计记录，各项资产实际清理报废时，应根据实际清理报废情况和已预计的可收回金额确认损益。

第四十条　企业的存货、固定资产、无形资产和投资因发生永久或实质性损害情形，应依据下列证据认定财产损失：

（一）资产被淘汰、变质的经济、技术等原因的说明；

（二）企业法定代表人、主要负责人和财务负责人签章证实有关资产已霉烂变质、已无使用价值或转让价值、已毁损等的书面申明；

（三）中介机构或有关技术部门的品质鉴定报告；

（四）无形资产的法律保护期限文件；

（五）有关被投资方破产公告、破产清偿文件；工商部门注销、吊销文件；政府有关部门的行政决定文件；终止经营、停止交易的法律或其他证明文件；

（六）有关资产的成本和价值回收情况说明；

（七）被投资方清算剩余财产分配情况的证明。

第四十一条　企业委托金融机构向其它单位贷款，被贷款单位不能按期偿还的，比照本办法投资转让处置损失进行处理。

第七章　资产评估损失的认定

第四十二条　企业各项资产因评估确认的损失申请税前扣除，必须符合以下条件：

（一）国家统一组织的企业清产核资中发生的资产评估损失；

（二）企业按规定应纳税的各种类型改组中发生的评估损失；

（三）企业免税改组业务，对各类资产评估净增值或损失已进行纳税调整的。

第四十三条　企业的各项资产应依据下列证据确认资产评估损失：

（一）国家统一组织清产核资的文件（不包括国有资产日常管理中经常化、制度化资产清查）；

（二）中介机构资产评估资料；

（三）政府部门资产评估确认文书；

（四）应税改组业务已纳税证明资料；

（五）免税改组业务涉及资产评估增值或损失已纳税调整证明资料。

第八章　其他特殊财产损失的认定

第四十四条　因政府规划搬迁、征用等发生的财产损失申请税前扣除，必须符合下列条件：

（一）有明确的法律、政策依据；

（二）不属于政府摊派。

第四十五条　企业因政府规划搬迁、征用，依据下列证据认定财产损失：

（一）政府有关部门的行政决定文件及法律政策依据；

（二）专业技术部门或中介机构鉴定证明；

（三）企业资产的账面价值确定依据.

第四十六条　除国家规定可以从事信贷业务的金融保险机构（包括经批准成立的企业集团内部财务公司）外，企业之间原则上不得直接从事信贷业务。企业之间除因销售商品等发生的商业信用外，其他的资金拆借发生的损失除经国务院批准外，一律不得在税前扣除。

第四十七条　企业对外提供与本身应纳税收入有关的担保，因被担保人不能按期偿还债务而承担连带还款责任，经清查和追索，被担保人无偿还能力，对无法追回的，比照本办法坏账损失进行管理。企业为其他独立纳税人提供的与本身应纳税收入无关的贷款担保等，因被担保方还不清贷款而由该担保人承担的本息等，不得申报扣除。

第四十八条　企业由于未能按期赎回抵押资产，使抵押资产被拍卖或变卖，其账面净值大于变卖价值的差额部分，依据拍卖或变卖证明，认定为财产损失。

第九章　责任

第四十九条　税务机关应按本办法规定的时间和程序，本着公正透明、廉洁高效和方便纳税人的原则，及时受理和审批纳税人申报的财产损失审批事项。非因客观原因未能及时受理或审批的，或者未按规定程序进行审批和核实造成审批错误的，应按《中华人民共和国税收征收管理法》和税收执法责任制的有关规定追究责任。

第五十条　税务机关对企业申请税前扣除的财产损失的审批不改变企业的申报责任，企业采用伪造、变造有关资料证明等手段多列多报财产损失，或本办法规定需要审批而未审批直接税前扣除财产损失造成少缴税款的，税务机关根据《中华人民共和国税收征收管理法》的有关规定进行处理。

因税务机关责任审批或核实错误，造成企业未缴或少缴税款，按《中华人民共和国税收征收管理法》第52条规定执行。

第五十一条　税务机关对企业自行申报扣除和经审批扣除的财产损失进行纳税检查时，根据实质重于形式原则对有关证据的真实性、合法性和合理性进行审查，对有确凿证据证明由于不真实、不合法或不合理的证据或估计而造成的税前扣除应依法进行纳税调整，并区分情况分清责任，按规定对纳税人和有关责任人依法进行处罚。有关技术鉴定部门或中介机构为纳税人提供虚假证明，导致未缴、少缴税款的，按《中华人民共和国税收征收管理法》及其实施细则的规定处理。

第十章　附则

第五十二条　各省、自治区、直辖市和计划单列市国家税务局、地方税务局可根据本办法制定具体实施办法。

第五十三条　本办法自2005年9月1日起执行，国家税务总局1997年12月16日印发的《企业财产损失税前扣除管理办法》（国税发[1997]190号）同时废止。

Administrative Measures for the Pre-income-tax Deduction of Property Losses of Enterprises
Order of the State Administration of Taxation
No. 13

The Administrative Measures for the Pre-income-tax Deduction of Property Losses of Enterprises, which, upon deliberation, have been adopted at the fourth executive meeting of the State Administration of Taxation on June 3, 2005, are hereby promulgated and shall go into effect as of September 1, 2005.

Xie Xuren, Director-general of the State Administration of Taxation
August 9, 2005

Administrative Measures for the Pre-income-tax Deduction of Property Losses of Enterprises

Chapter I General Provisions

Article 1 With a view to further regulating and improving the administration of the pre-income-tax deduction of property losses of enterprises and promoting the finer administration of enterprise income taxes, these Measures are formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Collection and the detailed rules for the implementation thereof, the Interim Regulation of the People's Republic of China on Enterprise Income Taxes and the detailed rules for the implementation thereof.

Article 2 The term "property" as mentioned in these Measures refers to the assets that are owned or controlled by enterprises and used for business operations and management activities and are related to the taxable incomes, including cash, bank deposits, accounts receivable and prepayments （including notes receivable）, inventories, investments （including entrustment loans and authorized financial management）, fixed assets, intangible assets （excluding goodwill） and other assets.

Article 3 The various property losses of an enterprise can be classified, according to the nature of properties concerned, into the loss of monetary capital, loss from bad debts, loss of inventories, loss from investment transfer or liquidation, loss of fixed assets, loss from construction in process and construction materials thereof, loss of intangible assets and loss of other assets; or be classified, according to the declaration procedures for deduction, into the property loss deducted upon declaration by enterprises themselves or the property loss deducted upon examination and approval; or be classified, according to the cause of loss, into the normal loss （including normal transfer, discarding as useless or liquidation）, abnormal loss （including the loss resulting from the such force majeure as wars and natural disasters, loss resulting from damages or theft due to poor management or loss resulting from policies, etc.）, appraisal loss resulting from reorganization and permanent and substantial damages.

Article 4 The various property losses of an enterprise shall be deducted in the year when the losses occur, and may not be deducted in advance or afterwards. If an enterprise fails to declare its property losses on schedule due to reasons other than calculation errors or other objective reasons, such losses may not be deducted after expiry of the time limit. If the examination and approval by the competent taxation authority is required under these Measures, the declaration shall be timely made in accordance with the prescribed time and procedures. In case the property loss is not deducted on schedule due to any reason attributable to the taxation organ, the tax returns of the year when the property loss occurs shall be adjusted upon approval of the competent taxation organ, and the taxable incomes shall be recalculated. In case the taxable incomes after adjustment are less than that prior to adjustment, the tax overpayment in the year when the property loss occurs shall be refunded or can offset the tax arrears or the taxes payable of the following period according to the relevant provisions, provided that the current tax year for the property loss will not change.

Article 5 Where the property loss of an enterprise declared for deduction has been recovered or compensated, the value recovered or compensated shall be incorporated into the taxable incomes in the year when the value is recovered or actually compensated. Where the accounts receivable can not be recovered due to the creditor's reasons, including the accounts receivable that remain unpaid for over three years, if they have been confirmed as loss upon the application of the creditor for pre-income-tax deduction according to these Measures and has been deducted , they shall be incorporated into the taxable incomes of the current period and pay corresponding enterprise income taxes.

Chapter II Examination and Approval of Pre-income-tax Deduction of Property Losses

Article 6 The property loss resulting from the sale, transfer or realization of assets in the business operation and management activities of an enterprise, the normal loss of various inventories or the property loss resulting from the normal liquidation of fixed assets after they have reached or exceeded their service life shall be declared for deduction in the current period when the above-mentioned losses actually occur.

Article 7 Upon the examination and approval by the competent taxation authority, the property losses of an enterprise resulting from any of the following causes can be deducted when the enterprise declares the enterprise income taxes:

（1） Loss of the cash, bank deposits, inventories, short-term investments or fixed assets due to force majeure, such as natural disaster or war, or from poor management;

（2） Loss from doubtful debts of accounts receivable or prepayments;

（3） Loss from bad debts of a financial enterprise;

（4） Property loss confirmed due to permanent or substantial damage to inventories, fixed assets, intangible assets or long-term investments;

（5） Investment loss resulting from the dissolution or liquidation of the invested party;

（6） Loss resulting from the appraisal of various assets that can be deductible;

（7） Property loss resulting from the relocation or expropriation as planned by the government; or

（8） Loss of from direct loans other than the credit operations between enterprises that are permitted by the state.

Article 8 The examination and approval of pre-income-tax deduction of property losses of an enterprise is conducted to examine whether or not the declaration materials provided by taxpayers according to the provisions conform to the statutory conditions. Where it is necessary for the taxation authority in charge of examination and approval to verify the contents of declaration materials, the taxation authority in charge of examination and approval shall designate two or more functionaries to carry out the verification. If the workload of on-the-spot inspection is heavy or time-consuming in view of the large amount of property loss or insufficiency of extrinsic legal evidence, it may entrust the taxation authority at the county （district） level where the enterprise is located to organize the verification. Taxation authorities may check the authenticity of whether pre-income-tax deduction of property loss has been approved.

Article 9 As a general rule, the competent taxation authority at the level of county （district） where the enterprise is located is responsible for the pre-income-tax deduction of property loss of an enterprise. The taxation authorities of provinces, autonomous regions, municipalities directly under the Central Government or cities under separate planning （hereinafter referred to as provincial taxation authorities） may, on the basis of the amount of property loss, divide the power of examination and approval. The property loss resulting from the relocation or expropriation as planned by the government shall be subject to the examination and approval of the taxation authority at the next higher level of the taxation authority of the place where the said government is located.

Article 10 The pre-income-tax deduction of property losses of an enterprise may not be passed on to deferent levels for approval. The enterprise may file an application with the competent taxation authority at the county （district） level where the enterprise is located or may directly file an application with the competent taxation authority in charge of examination and approval as prescribed by the provincial taxation authority.

Article 11 The acceptance, examination and approval of applications for pre-income-tax deduction of property losses of enterprises shall be carried out by the taxation authorities at all levels in light of the relevant provisions in the Circular of the State Administration of Taxation on Several Issues Concerning the Implementation of Taxation Administrative Licenses （Guo Shui Fa [2004] No. 73）, with the exception of hearings and public announcements.

Article 12 Where a taxation authority at the county （district） level is responsible for the examination and approval of the pre-income-tax deduction of property losses, it shall, within 20 working days as of the date of acceptance of the application, make an examination and approval decision; where a taxation authority at the level of a city divided into districts is responsible for the examination and approval of the pre-income-tax deduction of property losses, it shall, within 30 working days as of the date of acceptance of the application, make an examination and approval decision; where a taxation authority at the provincial level is responsible for the examination and approval of the pre-income-tax deduction of property loss, it shall, within 60 working days as of the date of acceptance of the application, make an examination and approval decision. If the above-mentioned examination and approval decision cannot be made within the prescribed time limit because the situation is complicated and needs to be verified, the time limit may be extended for another ten days upon approval of the person-in-charge of the taxation authority at the same level, and the taxpayer shall be notified of the reasons for such extension.

Article 13 the various property losses of an enterprise that are subject to examination and approval shall be reported, once and for all, to the taxation authority for examination and approval within 15 days after the end of a tax year. If an enterprise needs to collect evidence on the spot in the case of natural disasters or permanent or substantial damage, it shall file an application for examination and approval during the evidence preservation period, or may file an application for examination and approval after the end of the tax year. However, it must present the appraisal materials issued by intermediary institutions or technical appraisal departments of the state or those authorized by the state.

Article 14 The pre-income-tax deduction of property losses of an enterprise shall be governed by the rule that the department in charge of examination and approval shall be held responsible. The taxation authorities at all levels shall, pursuant to the requirements of these Measures, incorporate the examination and approval of property loss into the system of post responsibility assessment, standardize the procedures, specify the responsibilities and establish a sound supervisory and regulatory system and a responsibility investigation system.

Chapter III Evidence for the Determination of Property Losses

Article 15 When an enterprise applies for the deduction of various property losses, it shall provide legal evidences showing that the property loss it reports has actually been incurred, which shall include: external evidence with legal effects, economic appraisal certificates as issued by qualified intermediary agencies, and internal evidence of the enterprise on certain matters.

Article 16 The term "external evidence with legal effects" refers to the written documents with legal effects related to the property losses of an enterprise and issued by the judicial organs, public security organs, administrative organs or professional technical appraisal departments, etc., mainly including:

（1） Judgments and rulings of the judicial organs;

（2） Certification and official replies of the public security organs on filing or conclusion of cases;

（3） Certification of write-off, revocation and suspension of business license issued by the administrative departments of industry and commerce;

（4） Public announcements of bankruptcy liquidation and documents of debt discharge of the enterprise;

（5） Official documents and documents on express prohibition issued by the government departments;

（6） Appraisal reports given by the professional technical appraisal departments of the state and those authorized by the state;

（7） Documents on the investigation of insured losses and the calculation sheet of claims settlement, etc., issued by the insurance companies for insured assets; and

（8） Other evidence complying with the statutory conditions.

Article 17 The term "economic appraisal certificates issued by intermediary agencies" refers to those specific economic appraisal certificates or written appraisal opinion with respect to the given economic matters of an enterprise issued by registered tax firms or other professional appraisal institutions that have statutory qualifications, according to the principles of independence, objectivity and justice, on the basis of full investigation and study, demonstration and calculation, and upon professional conclusion and objective judgment.

Article 18 An enterprise with a sound accounting system and a perfect internal control system can take the internal evidence on certain matters as the evidence for determining the property loss. The term of "internal evidence of the enterprise on certain matters" refers to the internal certificates or declarations on assuming liabilities made by the enterprise in respect of the damages to, or discarding of, or inventory loss of various assets, mainly including:

（1） The relevant accounting materials and original documents;

（2） Asset inventory forms;

（3） Business contracts relating to the economic acts concerned;

（4） Appraisal documents or materials of the internal technical appraisal department of an enterprise （as for property losses in relatively large amounts and with significant impacts, industry experts shall be retained to participate in the technical appraisal and demonstration）;

（5） Internal examination and approval documents and explanations on the relevant conditions of the enterprise;

（6） Explanations on the determination of liabilities of the liable person and the corresponding compensation with respect to the losses resulting from poor business operation and management; and

（7） Declarations of legal representative, person-in-charge and finance chief of an enterprise on assuming legal tax liabilities for the authenticity of certain matters.

Chapter IV Determination of Monetary Asset Losses

Article 19 With respect to the cash shortage sorted out by an enterprise, the balance of the amount of the shortage less the amount of the compensation made by the person liable shall be determined as loss. The following evidences shall be provided for the determination of cash loss:

（1） Cash inventory forms confirmed by the cash keeper （including the records back to the base date）;

（2） Explanations of the cash keeper on the shortage and the relevant verification documents;

（3） Explanations on the determination of liabilities and the corresponding compensations if the shortage is incurred from poor management; and

（4） Relevant judicial case materials if a criminal offence is involved.

Article 20 When applying for pre-income-tax deduction of loss from bad debts occurred to the accounts receivable or prepayment, an enterprise shall meet one of the following conditions:

（1） The debtor is declared bankrupt, dissolved （including being ordered to close down by the government）, deprived of industrial and commercial business license, deceased or missing, and its residual property or legacy is insufficient to discharge its or his debts;

（2） The debts remain unpaid for over three years after the due date and the debtor can show strong evidence of lack of the ability to discharge the debts;

（3） The bad debts have resulted from debt restructuring; or

（4） The accounts receivable really can not be recovered due to force majeure, such as natural disasters, wars or international political events, and so on.

Article 21 Where a debtor has already been liquidated under any of the circumstances as described in Article 20 of the present Measures, the irrecoverable part of debts after deducting the debts that have actually been discharged in property liquidation shall be determined as the loss of the creditor.

As for the part that remain unliquidated, the intermediary institution shall issue an economic appraisal certificate upon its professional conclusion and objective judgment, and the part that really cannot be recovered shall be determined as the loss of the creditor.

In the case of the accounts receivable from a debtor who has already been missing or dead, if , upon the certification of the missing or dead status of the debtor issued by the public security organ, his/her legacy is legally judged as insufficient to discharge the debts or it is impossible to find the debtor to recover the debts, the intermediary institution shall issue an economic appraisal certificate upon professional conclusion and objective judgment, and the part that really cannot be recovered shall be determined as the loss of the creditor.

If the accounts receivable can not be recovered from the debtor due to force majeure, such as natural disasters, wars or international political events, the enterprise shall make a special explanation, and upon the relevant economic appraisal certificate issued by the intermediary institution on the basis of professional conclusion and objective judgment, or after obtaining the relevant certificates issued by the embassy （consulate） of China stationed in the foreign country, the part that really cannot be recovered shall be determined as the loss of the enterprise .

As for the accounts receivable that can not be recovered by the due date, if there is any judgment or ruling of the court against the enterprise, or if the court makes the rule of terminating （discontinue） the execution because, though the enterprise wins the case, yet the debtor is judged legally insolvent, such accounts receivable shall be determined as the loss of the enterprise, on the basis of the legal documents of judgment, ruling or termination （discontinuance） of execution of the court.

Among the accounts receivable that can not be recovered by the due date, as for those each of which is of small value and is not adequate to make up the cost for debt recovery, the enterprise shall make a special statement, and upon the relevant economic appraisal certificate issued by the intermediary institution issues on the basis of professional conclusion and objective judgment, the part that really cannot be recovered shall be determined as the loss of the enterprise.

As for the accounts receivable which have not been recovered for over 3 years after the due date, if the enterprise has the records of legal negotiation and urgency for payment, and it has been confirmed that the debtor is insolvent, and has made losses for 3 consecutive years or has suspended its business operations for 3 consecutive years, and it can also be confirmed that there is no business transactions between the enterprise and that debtor within the last 3 years, such accounts receivable may be determined as the loss of the enterprise upon the relevant economic appraisal certificate issued by the intermediary institution on the basis of professional conclusion and objective judgment.

As for the accounts receivable that have not been recovered for over 3 years after the due date, if the debtor is overseas or in Hong Kong, Macao or Taiwan Region and the sums can not be recovered after making urges for payment according to law, such accounts receivable shall be determined as the loss of the enterprise after the relevant certificate issued by the overseas intermediary institution or those issued by the embassy （consulate） of China stationed in the foreign country is obtained.

Article 22 The following evidence shall be provided in the application for pre-income-tax deduction of loss from bad debts incurred to the accounts receivable or prepayment of an enterprise if they are under any of the afore-mentioned circumstances:

（1） Public announcements made by the court on the bankruptcy and the documents of debt discharge in the bankruptcy liquidation;

（2） Certification of write-off or revocation of business license issued by the administrative department for industry and commerce;

（3） Documents of relevant administrative decisions of the government on withdrawal or ordering to close down;

（4） Certifications of the missing or dead status issued by the public security organ or other relevant department;

（5） Absolute evidence showing that the debts have been outstanding for more than three years or the debtor lacks the ability to discharge the debts;

（6） The debt restructuring agreement of the creditor, the judgment of the court, or the document on approving the conversion of the debts of a state-owned enterprise into shares; or

（7） The judgment of the court or the certificate issued by the local taxation authority where there is any current account with an associated party.

Chapter V Determination of Non-monetary Asset Losses

Article 23 The inventory loss of an enterprise refers to those net losses resulting from inventory shortage, deterioration, elimination, damages, discarding as useless and theft of the relevant commodities, finished products, semi-finished products, products in process, various materials, fuels, packing, and low-value consumption goods, etc.

Article 24 As for the inventory shortage, the balance of their value less the amount compensated by the liable person shall be determined as loss on the basis of the following evidence:

（1） Inventory forms;

（2） Economic appraisal certificates issued by an intermediary institution;

（3） Explanations of the inventory keeper for the inventory shortage;

（4） The basis for determining the value of short inventories （including the relevant warehousing formalities, price of identical or similar inventories as indicated on the purchase invoices, or other basis for determination）; and

（5） Explanations on the determination of relevant liabilities within the enterprise and the compensation made by the person liable, and the internal ratification documents.

Article 25 As for the inventory discarded as useless or damaged, the balance of its book value less the salvage value, the insurance indemnity and the compensation made by the person liable shall be determined as loss on the basis of the following evidence:

（1） As for the inventory each of which or each batch of which is of relatively low value, the relevant technical division of the enterprise shall issue the technical appraisal certificate;

（2） As for the inventory each or each batch of which is of relatively high value, the enterprise shall obtain the technical appraisal certificate issued by the relevant technical appraisal department of the state or by the intermediary institution with the qualification for technical appraisal;

（3） The explanation of the insurance company on the settlement of claims if any insurance claim is involved, ;

（4） Explanations on the discarding and derogation of the inventory goods and the examination and approval documents within the enterprise;

（5） Explanations on the salvage value; and

（6） Explanations on the determination of the relevant liabilities within the enterprise and the compensation made by the person liable, and the internal ratification documents.

Article 26 As for the inventory goods that have been stolen, the balance of the book value thereof less the insurance indemnity and the compensation made by the person liable shall be determined as loss on the basis of the following evidence:

（1） Records of reporting the theft to the public security organ, documents regarding the case-filing, case-breaking and case conclusion issued by the public security organ;

（2） Explanations on the determination of the liabilities of the liable persons and the corresponding compensations; and

（3） Explanations of the insurance company about the settlement of claims if any insurance claim is involved.

Article 27 The loss of fixed assets includes the net loss resulting from the inventory shortage, phasing out, derogation, discarding, loss and theft of the houses and buildings, machines and equipment, transportation facilities, tools and apparatus, etc., of an enterprise.

Article 28 As for the inventory shortage of fixed assets, the balance of the book value thereof less the amount compensated by the reliable person shall be determined as loss on the basis of the following evidence:

（1） Inventory forms of fixed assets;

（2） Explanations for the inventory shortage, as for the inventory shortage of fixed assets each or each batch of which is of relatively high value, the enterprise shall give a special explanation item by item and the relevant economic appraisal certificates shall be issued by the intermediary institution issue on the basis of professional conclusion and objective judgment;

（3） Documents regarding the determination of relevant liabilities within the enterprise and the internal ratification documents, etc.

Article 29 As for the fixed assets that have been discarded as useless or derogated, the balance of the net book value thereof less the salvage value, insurance indemnity and compensation made by the person liable shall be determined as loss on the basis of the following evidence:

（1） Appraisal certificates issued by the relevant departments within the enterprise;

（2） Where the fixed assets each of which or each batch of which has been discarded as useless or damaged, the enterprise shall make a special explanation item by item and entrust the institution qualified for the technical appraisal to carry out appraisal and issue a appraisal certificate;

（3） Where the fixed assets have been damaged or discarded as useless due to force majeure （natural disasters, accidents or battles）, the enterprise shall have the appraisal report issued by the relevant functional department, for instance, the certification of suffering from a disaster as issued by the public fire department, on-the-spot accident handling report or certification of vehicle damages issued by the public security organ, the certification of house demolition issued by the housing administration department, and the boiler or elevator inspection report issued by the safety inspection department, etc.;

（4） Explanations on the discarding of and damages to fixed assets and the internal ratification documents of the enterprise; and

（5） The explanations on the settlement of claims given by the insurance company if any insurance claim is involved.

Article 30 As for the fixed assets that have been stolen, the balance of the net book value thereof less the compensation made by the person liable and the insurance indemnity shall be determined as loss on the basis of the following evidence:

（1） Records of reporting the theft to the public security organ, and documents regarding the case-filing, case-breaking and case conclusion issued by the public security organ;

（2） Explanations on the determination of the relevant liabilities within the enterprise and the compensation made by the person liable, and the internal ratification documents; and

（3） Explanations on the settlement of claims given by the insurance company if any insurance claim is involved.

Article 31 The loss from construction in process and materials thereof refers to the loss resulting from the projects under construction of an enterprise which have been suspended, abandoned and discarded as useless, or demolished, as well as the loss resulting from the discarding or selling at reduced price of the corresponding project materials as a consequence.

Article 32 As for a project under construction which has been suspended, abandoned and discarded as useless, or demolished, the balance of the book value thereof less the salvage value shall be determined as loss on the basis of the following evidence:

（1） Documents of the state expressly ordering to suspend construction projects;

（2） Documents on suspension and demolition of construction projects issued by the relevant government departments;

（3） Appraisal opinions, explanations of causes and ratification documents issued by the enterprise with regard to the project under construction which has been discarded or abandoned; As for the discarding of a project under construction which is of relatively high value, the enterprise shall have the technical appraisal opinions issued with the participation of industry experts; and

（4） The basis for determining the actual investment in the project.

Article 33 As for a project under construction which has been damaged as a result of a natural disaster or an unexpected accident, the balance of the book value thereof less the salvage value, insurance indemnity and compensation made by the person liable shall be determined as loss on the basis of the following evidence:

（1） The certification document proving the occurrence of the relevant natural disaster or unexpected accident;

（2） The explanations on the settlement of claims given by the insurance company if any insurance claim is involved; and

（3） Explanations on and ratification documents about the determination of the relevant liabilities and the compensation of the liable person within the enterprise.

Article 34 The loss of project materials shall be determined in light of the provisions on the determination of inventory loss in these Measures.

Chapter VI Determination of Permanent or Substantial Asset Damages

Article 35 Inventory goods under one or more of the following circumstances shall be deemed as having suffered from permanent or substantial damages:

（1） It has become rotten and deteriorated;

（2） It has exceeded the shelf life and is of no disposal value;

（3） It is no longer needed in operation, and has no use value or disposal value; or

（4） There is other justification that it is of no use value and disposal value.

Article 36 A fixed asset under any of the following circumstances shall be deemed as having suffered from permanent or substantial damages:

（1） It has stood idle for long and is of no disposal value;

（2） It is unable to be used due to technological advances;

（3） It has been damaged and it is of no use value and disposal value;

（4） Due to its own reason, the use of it will produce a large quantity of defective products;

（5） Other circumstances under which it is practically unable to bring economic benefits to the enterprise.

Article 37 An intangible asset under one or more of the following circumstances shall be deemed as having suffered from permanent or substantial damages:

（1） It has been substituted by other new technologies, and is of no use value or disposal value;

（2） It has exceeded the time limit of legal protection, and is unable to bring economic benefits to the enterprise;

（3） There is other justification that it is of no use value and disposal value.

Article 38 An investment under one or more of the following circumstances shall be deemed as having suffered from permanent or substantial damages:

（1） The invested party has been declared bankrupt, revoked or closed down, or its industrial and commercial business license has been written off or revoked in accordance with the law;

（2） The financial condition of the invested party is seriously deteriorated, a huge loss has been incurred accumulatively, and the invested party has suspended its business for 3 consecutive years or more, and has no plans of reorganization, etc. to resume its business operation;

（3） The financial condition of the invested party is seriously deteriorated, a huge loss has been incurred accumulatively, and the stock of the invested party has been delisted in the stock exchange and the stock trading has been suspended for 1 year or more; or

（4） The financial condition of the invested party is seriously deteriorated, a huge loss been incurred accumulatively, and it has been liquidated.

Article 39 If there is strong evidence proving that any inventory goods, fixed asset, intangible asset or investment has suffered from property losses or permanent or substantial damages, the property loss shall be confirmed after the converted income, recoverable amount and liability, and insurance indemnity are deducted.

The recoverable amount shall be determined upon the appraisal by an intermediary institution. If it is not appraised by any intermediary institution, the recoverable amount of fixed assets or long-term investment may be generally and provisionally determined as 5% of the book value thereof, and 1% for inventory goods. The accounting records shall be preserved for all kinds of assets that are confirmed as having suffered form permanent or substantial damages. When each asset is actually liquidated for discarding, the losses and gains shall be confirmed on the basis of the actual liquidation and rejection as well as the estimated recoverable amount.

Article 40 As for inventory goods, fixed assets, intangible assets or investment that are suffered from permanent or substantial damage, the property loss shall be confirmed on the basis of the following evidence:

（1） Explanations of economic and technical factors for the elimination or deterioration of assets;

（2） Written statements signed by and affixed with the seals of the legal representative, person-in-charge or financial chief of an enterprise on the fact that the relevant assets have been rotten and deteriorated, are of no use value or disposal value or has been damaged;

（3） The quality appraisal report as issued by an intermediary institution or by the relevant technical department;

（4） Documents on the time limit for legal protection of intangible property;

（5） An announcement on the bankruptcy and the documents on liquidation of the relevant invested party, the write-off or revocation documents issued by the administrative department for industry and commerce, the documents regarding administrative decision of the relevant governmental department; or legal or other certification documents on the termination of business operation or suspension of trading;

（6） Explanations on the recovery of costs and value of the relevant assets; or

（7） Certification on the distribution of the residual assets upon liquidation of the invested party.

Article 41 Where an enterprise entrusts a financial institution to provide loans to any other entity and the said entity can not pay loans on schedule, it shall be handled in light of the provisions on the disposal of investment transfer loss in these Measures.

Chapter VII Determination of Asset Appraisal Losses

Article 42 The following conditions shall be satisfied if an application for pre-income-tax deduction is filed for the loss of various assets of an enterprise confirmed upon appraisal:

（1） The asset appraisal loss arises from the asset and capital verification of the enterprise as uniformly organized by the state;

（2） The appraisal loss arises from the various taxable reorganizations of the enterprise; and

（3） The tax payment adjustment has been conducted to the net appreciation or losses from various asset appraisals in the case of tax-free reorganization of the enterprise.

Article 43 The asset appraisal loss of various assets of an enterprise shall be determined on the basis of the following evidence:

（1） Documents on the asset and capital verification as uniformly organized by the state （excluding the regular and institutionalized asset liquidations in the daily administration of state assets）;

（2） Assets appraisal materials issued by intermediary institutions;

（3） Assets appraisal confirmation documents issued by the governmental department;

（4） Certification materials on the tax payment for a taxable reorganization business; and

（5） Certification materials on the tax payment adjustment if a tax-free reorganization business involves the appreciation or loss arising from the asset appraisal.

Chapter VIII Determination of Other Special Property Losses

Article 44 The following conditions shall be met if an application for pre-income-tax deduction of is filed for property loss resulting from the relocation or expropriation as planned by the government:

（1） Having a definite legal and policy basis; and

（2） Not belonging to the government apportion.

Article 45 The property loss of an enterprise resulting from relocation or expropriation as planned by the government shall be determined on the basis of the following evidence:

（1） Documents on administrative decisions of the relevant governmental departments and the legal and policy bases;

（2） Appraisal certificates issued by professional technical departments or intermediary institutions; and

（3） The basis for determining the book value of the enterprise's properties.

Article 46 As is a general rule, no enterprise may directly engage in credit operations, with the exception of the financial insurance institutions （including internal financial companies of enterprise groups established upon approval） that can engage in credit operations as prescribed by the state. Except the commercial credits that result from the sale of commodities between enterprises, the loss resulting from other fund lending may