_amp;quot;Jiangxi Province State Tax losses tax deductible business management of real

							"Jiangxi Province State Tax losses tax deductible business management of
real
Jiangxi Province, State Administration of Taxation issued "Jiangxi State
Tax losses tax deductible business management implementation approach"
of the notice
(Gan Guo Shui Fa 〔2005〕 353 号)

Municipalities, counties (districts) State Tax:

Now "in Jiangxi Province State Tax losses tax deductible business
management implementation method," issued to you, please earnestly
implement the light of local conditions. Implementation of any comments and
suggestions, please report provinces Internal Revenue Service (Income Tax Office).

Attachment: (abbreviated)
Annex: 1. Business losses before income tax deduction Application Form
2. Corporate income tax deductible for property loss notice received
3. Corporate income tax deductible for property losses not accept notices
4. Business losses before income tax deduction material correction notice

December 30, 2005




Jiangxi Province State Tax deductible business loss of property tax administration
measures for implementation




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To further standardize the first enterprise losses before income tax deduction, and
based on "The People's Republic of China on Tax Collection
and Administration Law" (hereinafter "Tax Administration
Act") and its implementation details, "Provisional Regulations
of the PRC Enterprise Income Tax" and its Implementing Rules and the
State Administration of Taxation, "Corporate income tax deductible
property loss management approach" (State Administration of Taxation
Order No. 13) of the relevant provisions formulated.


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Article The term property is owned or controlled, for operational and management
activities and to obtain taxable income and related assets, including cash, bank
deposits, accounts receivable and prepayments (including notes receivable), inventory,
investment (including the commissioning of loans, trust management), fixed assets,
intangible assets (excluding goodwill) and other assets.


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Article corporate losses can be divided into monetary financial losses, bad debts,
inventory losses, investment loss transfer or liquidation, the loss of fixed assets in
construction and engineering material losses, intangible assets, losses and other asset
losses.


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Article enterprise losses before income tax deduction, the taxpayer primarily
self-declaration by the national tax authorities to approve deductions and deduction
forms.


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Article taxpayers that self declaration of property loss deduction shall promptly report
the year of loss deduction shall not be advanced or deferred. Not due to calculation
errors or other objective reasons, the taxpayer did not deduct the losses in time, late
may not be deducted.

Shall be entitled to state tax authorities to approve the tax deductible for property loss,
the taxpayer should be recognized in its annual property loss, time and procedures
required to apply; is approved, property losses recognized in the annual one-time
pre-tax deduction, not installments deducted in future years.


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Article VI of the management activities of the taxpayer actually occurred following
the loss of property can be deducted current self-declaration:

(A) the sale, transfer, sale of assets such as property loss;

(B) the occurrence of normal wear and tear of the inventory;

(C) the use of fixed assets reached or exceeded normal retirement age and clean up
the property damage occurred.


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Article VII of the taxpayer for the following reasons damage to property occurred,
subject to national tax authorities to approve the right to declare corporate income tax
can be deducted in:

(A) because of natural disasters, war, political events such as force majeure, or people
management responsibility, resulting in cash, bank deposits, inventories, short-term
investments, fixed assets of the loss;

(B) accounts receivable, prepayments of bad debt losses occur;

(C) bad debt loss of financial enterprises;

(D) inventory, fixed assets, intangible assets, long-term investment for the case of
permanent or substantial property damage and losses recognized;

(E) due to the dissolution of the investors, liquidation of investment losses that
occurred;

(F) required to be deducted pre-tax losses of the assets assessment;

(Vii) the relocation of government planning, land acquisition and other property
damage occurred;

(8) state regulations allow in credit business enterprises outside the direct loan losses.


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Article VIII of taxpayers subject to the right place national tax authorities to approve
the property damage, should be 15 January the following year by the taxpayer to the
local concentration of one-time charge or supervision of national tax authority in
writing.


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Article enterprise of natural disasters, require a permanent or substantial damage to
the scene evidence collection, evidence should be retained in the reporting period in
time, but also in the following year's January 15 report concentrated.
Declaration should be issued by the taxpayer under the agency, the State and authorize
the expertise of such a department identification materials.


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Article taxpayers to declare income tax deductible property loss should be reported
"loss of business property tax deductible application form",
accurately reflects the basic information, the type of property loss, extent, quantity,
amount, the reasons for, and pre-tax deduction reasons and basis of tax law or policy,
and a copy of the State Administration of Taxation, "Corporate income tax
deductible loss of property management practices" required by the
evidence and related materials.


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Article of the property taxpayers reporting net losses, loss of property should be
provided to prove that indeed had actually occurred, legitimate, appropriate evidence,
including:

(A) the external evidence of the force of law;

(B) legally qualified intermediary to prove the economic appraisal;

(C) evidence of specific issues within the enterprise.


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Article XII shall be subject to national tax authorities to approve the business property
losses, the taxpayer should be the competent Tax Office or the regulatory authorities
Tax Service Tax authorities a written application for tax administration.


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Article XIII of the competent national tax authorities Tax Service Office received a
claim, receiving personnel should be dealt with separately under the following
circumstances:

(A) the application materials are complete and meet the statutory form, it shall
promptly accept and transmit at the same level 2 working days of tax administration;

(B) the law does not require approval by the implementation of the tax authorities, it
shall immediately inform the taxpayer is inadmissible;

(C) Application materials not available or there is an error, it shall inform and allow
taxpayers corrected on the spot, and was transferred to the same level 2 working days
of income tax management.


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Article XIV Tax Service Income Tax Management Office received the application
materials transferred, shall promptly review. Application materials are incomplete or
do not meet the statutory form, should be within 3 working days, inform the taxpayer
of all necessary corrections. Taxpayer submit all required materials to make
corrections, should be accepted.


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15th National Tax authorities shall monitor the direct tax management reporting shall,
receiving personnel should be dealt with separately under the following
circumstances:

(A) the application materials are complete and meet the statutory form, it shall be
accepted;

(B) the law does not require approval by the implementation of the tax authorities, it
shall immediately inform the taxpayer is inadmissible;

(C) Application materials not available or there is an error, it shall inform and allow
taxpayers corrected on the spot;

(D) the application materials are incomplete or do not meet the statutory form, should
be within 5 working days, inform the taxpayer of all necessary corrections. Taxpayer
submit all required materials to make corrections, should be accepted.


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Article XVI or regulatory state tax authorities accepted the charge or not to accept the
taxpayer's tax deduction for property damage, shall issue a state tax
authority level seal affixed and date of receiving notice of notice or inadmissible.


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17th National Tax authorities shall be approved by the higher tax deductions for
property damage, charge or supervision of national tax authorities should accept the
date of 5 working days directly to the right to approve the national tax authorities for
examination and approval.


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18th National Tax authorities at all levels of approval shall be deducted pre-tax loss of
property, divided by the following permissions:

(A) of the taxpayer's property damage occurred throughout the year pre-tax
deductions of 200 million yuan (inclusive), the county (city, district) the IRS
examination and approval;

(B) the taxpayer's property damage occurred throughout the year pre-tax
deductions of 200 million yuan to 800 yuan (inclusive), by the IRS for examination
and approval by City;

(C) the taxpayer's property damage occurred throughout the year pre-tax
deductions of 800 million yuan, and the consolidated tax payment for member
companies in the province-wide focus on pre-tax deduction for property damage, the
provincial examination and approval of the IRS.

(D) planning the relocation, land acquisition and other property damage occurred
causing taxpayers to apply for pre-tax deduction, by the seat of government level on a
national tax authorities Tax authorities for examination and approval.


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Article XIX of the national tax authority responsible for approving the required
application materials submitted by the taxpayer to conduct field verification, should
be assigned to two or more staff for verification. Large amount of property damage
due to external reasons such as insufficient legal evidence, field verification of the
workload and time-consuming, and may entrust the business at the county level for
organizing the implementation of national tax authorities.


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Lucky bankers power to approve the national tax authorities to taxpayers for tax
deductions for property damage, should be required to complete the audit period and
make approval decisions.

(A) of the counties (cities, districts) Internal Revenue Service for approval, should be
approved within 20 working days to make the decision;

(B) of the province, the IRS is responsible for approval by City shall be made within
30 working days after approval of the decision;

Within the prescribed time limit can not make the decision in, and 经 level national
tax authorities are responsible for the approval, may be extended 10 days, the reason
for extension and will inform the taxpayer.


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Twenty-one national tax authorities in charge of approving or regulatory decisions or
receive higher national tax authorities to approve the decision, it should be within 5
working days after the decision on an application service to taxpayers, and urge their
property to pre-tax loss recognized in year net.
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Article 2 of taxpayers money asset losses, the loss of non-monetary assets, permanent
or substantial damage to the assets, asset valuation losses, loss of assets other special
conditions such as income tax deductible, finds evidence in accordance with the State
Administration of Taxation, "business property, loss before income tax
deduction management approach "to Article 19 of the provisions of section
48.


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Article 3 adhere to the "who approved, who is responsible"
principle, in accordance with the "strict examination and approval,
standardize the management, powers and responsibilities of symmetry and
transparency" requirements, strict collective review and approval, the
implementation of sunshine operations, is strictly prohibited illegal, ultra vires,
unauthorized processing enterprises property loss before income tax deduction.


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Article 4 do for national tax authorities causes damage to property taxpayers to
declare deductions not on schedule, after approval by the approval of national tax
authorities, should be adjusted to confirm the loss of property tax returns the year,
recalculate the amount of taxable income. Adjusted the amount of such income tax
payable is less than the amount of payable income tax before adjustments and pay the
tax, shall be in accordance with relevant provisions of the tax rebate to offset the taxes
or the next tax bills, property damage may not change their tax year.


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Twenty-five taxpayers have already reported the damage to be deducted from the
value of property restoration or compensation, the value should be made to restore or
compensate the actual taxable income into the year, according to corporate income
tax.

Reason for the creditor does not pay accounts payable, including more than three
years unpaid accounts payable, if the creditors in accordance with these Regulations
has been confirmed in pre-tax losses and deductions, state tax authorities in charge or
control shall supervise the business into the current taxable income shall pay
enterprise income tax.


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Article 6 of taxpayers at all levels of national tax authorities to approve the loss of
property tax deductions for state tax authority matters or receive higher losses related
to corporate income tax deduction for approval before the decision, promptly set up a
business property losses should be deducted before income tax e-Ledger, records
related information, strengthen management.


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27th National Tax The competent or regulatory authority in the annual final settlement
of taxpayers, it should be combined with enterprise income tax assessment, special
inspections, further examination of taxpayers within its jurisdiction to declare
themselves less and less property damage by approving the authenticity of the
evidence legitimacy and rationality, the accuracy of the amount of the loss deduction.
The main contents include:

(A) declare the property loss before income tax deduction the truth, whether there is
false, overstated the phenomenon;

(B) the existence of the taxpayer shall be subject to national tax authorities to approve
the loss of their own property without the approval of the tax deduction;

(C) The taxpayer has to declare the value of net recovery for loss of property or
compensation, whether in the actual receipt of compensation included in the taxable
year.


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28th The tax authorities shall be deducted on corporate self-declaration and approval
by the loss of property tax deduction for inspection, according to the principle of
substance over form, the evidence on the authenticity, legitimacy and rationality
review, and there is clear evidence that as untrue, unlawful or unreasonable evidence
or an estimated pre-tax deduction, state tax authorities in charge or control taxes
should be adjusted according to the law; on the higher national tax authority for
approval, shall be reported to state tax authority for approval, the law adjusted, and
press "Tax Collection and Administration Law" and its
Implementing Rules of the relevant provisions of the taxpayers be punished.
Identification of the relevant department or agency to provide false evidence for the
taxpayers, resulting in outstanding, pay less tax, in accordance with "Tax
Collection Law" and its Implementing Rules of the regulations.


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29th National Tax authorities at various levels shall property losses should be tax
deductible business processing work into the Test in tax law enforcement
responsibility, establish and improve the supervision mechanism. Regularly carry out
inspection of law enforcement, law enforcement and supervision, strengthen the
approval of business property, loss before income tax net of supervision and
inspection. Supervision and inspection cover mainly the following aspects:

(A) approving the loss of property tax deductions based on compliance with laws and
regulations;

(B) how the matter whether the information is complete, standardized procedures, the
procedures are complete;

(C) whether the examination and approval authority and in accordance with the
provisions of the approval period for processing;

(D) whether the establishment of corporate tax deductions for loss of property
management Ledger;

(V) approval for the presence of things difficult enterprise, abuse of power and so on.


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The third 10 tax authorities should be required to time and procedures, in line with
fair, transparent, clean and efficient and convenient principle of taxpayers, the
taxpayers timely examination and approval of examination and approval items
reported property damage. Not due to objective reasons for non-acceptance or
approval in a timely manner, or according to the specified procedures for approval
and verification of the approval process wrong, and should, "Tax
Collection and Administration Law" and tax law enforcement
responsibility of the relevant provisions of the accountability responsibilities of the
staff.


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第三十一条 tax deductions for business losses approval is required to provide a
declaration of taxpayer data integrity, based on the legitimacy of the sufficiency of
evidence and property loss and legal conditions for the relevance of the written
examination, not the responsibility of taxpayers to declare real change.

Taxpayers using forged or altered data to prove the means of many newspaper
columns and more property damage, or the implementation of the Regulations
requires approval and without the approval of tax deductions for property losses
caused directly pay less tax, state tax authorities in charge or control should be based
on " Tax Administration Law, "dealing with the relevant
provisions.
Responsibility for approval of tax authorities or to verify the error, resulting in
corporate tax unpaid or underpaid, under "Tax Administration"
fifth 12 regulations.


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Thirty-second article this implementation method, referred to the competent national
tax authorities in the county is the IRS, Internal Revenue Service by City directly
under the tax bureau, High Technology Development Zone Management Branch,
Economic Development Zone Management Branch cf counties (cities and districts )
IRS approval limits and requirements of the Executive.


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Thirty-third article this implementation method, since January 1, 2006 shall come into
force.


Posted by: Jiangxi Province, other institutions Release Date: December 30, 2005
implementation date: January 1, 2006 (local regulations)

http://law.baidu.com/pages/chinalawinfo/1695/82/5331bcc36bd0776002d41f946bcf60
82_0.html source

Annex 1: Corporate income tax losses deductible Application Form

Company Name (stamp):

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│ Project │ │ net loss because the amount of examination and approval authority
to verify the amount of │ │ │ annual pre-tax deduction

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│ Company Description: │

?│ │

?│ │

?│ │

│ │ years on

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?National tax authority accepting comments │: │ national tax authority approving
comments: │

?│ │ │

?│ │ │
?│ │ │

?│ │ │

│ │ │

│ (seal) │ (seal) │

?Japanese │ years │ years │ Japan

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