Measures for the Administration of Pre-tax Deduction of Enterprise Asset Losses for Income Tax Purposes (State Administration of Taxation Announcement No. 25 of 2011):
Article 9: The following asset losses shall be deducted by way of list declaration to the tax authorities:
(a) Losses of non-monetary assets that are sold, transferred, or disposed of in accordance with the fair price in the course of the normal operation and management of an enterprise;
(b) Normal wear and tear of the enterprise's inventories;
(c) Losses incurred by the enterprise's fixed assets that have reached or exceeded their useful life and are normally scrapped and liquidated;
(d) Losses incurred by the enterprise's productive biological assets that have reached or exceeded their useful life and have died in a normal manner;
(e) Losses incurred by the enterprise in accordance with the principle of fair market transactions, through various trading venues
(e) Losses incurred by the enterprise through various trading venues, markets and other trading of bonds, stocks, futures, funds and financial derivative products in accordance with the principle of fair trading in the market.
Article 10: Losses of assets other than those mentioned in the preceding Article shall be deducted by way of special declaration to the tax authorities. Enterprises that are unable to accurately determine whether the asset losses are clear
single declaration for deduction can take the form of special declaration to declare the deduction.
On the issue of providing information, Announcement No. 25 also has provisions:
Article 29 Fixed assets inventory loss, loss of loss, for the balance of its net book value after deducting the compensation of the responsible person, shall be confirmed on the basis of the following evidential materials:
(a) the enterprise's internal determination of the relevant responsibility and the write-off information;
(b) the fixed assets inventory table;
< p> (C) the tax basis of fixed assets related information;(D) fixed assets inventory loss, loss of situation description;
(E) loss of a large amount of money, there should be professional and technical appraisal report or statutory qualification intermediary institutions issued a special report and so on.
Article 30 The loss of fixed assets scrapped and destroyed shall be the balance of its net book value after deducting the residual value and compensation of the responsible person, and shall be confirmed on the basis of the following evidences and materials:
(a) information related to the taxable basis of the fixed assets;
(b) information related to the responsibility of the enterprise and write-off information;
(c) appraisal materials issued by relevant departments of the enterprise;
(d) information related to the responsibility of the enterprise; (e) information related to the loss of fixed assets. (C) the identification materials issued by the relevant departments within the enterprise;
(D) involving liability compensation, there should be a statement of compensation;
(E) loss of a large amount or natural disasters and other force majeure causes the destruction of fixed assets, scrapping, there should be a professional and technical appraisal of the opinion or statutory
qualification intermediary institutions issued special reports.
Article 31 Theft loss of fixed assets shall be the balance of its net book value after deducting the compensation of the responsible person, and shall be confirmed on the basis of the following evidential materials:
(1) information related to the taxable basis of fixed assets;
(2) the record of the report by the public security organs, and the certificates of the public security organs for the filing, solving, and closing of the case;
(3) if liability compensation is involved. There should be a determination of liability and a description of the compensation situation.
Specifically, look at the 25th Notice, the provisions of the clearer.
In addition to the above information, you should also fill out the "list of business assets loss declaration of deduction return" or "special declaration of business assets loss deduction return", after the declaration of the tax authorities will give a copy of the enterprise, as a proof of the declaration has been made.