State Administration of Taxation, Official Reply to Issues Relevant to the Provisioning for Bad Debts by Foreign-invested Enterprises Engaging in Loan Guarantee Business

国家税务总局关于外商投资企业从事贷款担保业务计提坏帐准备问题的批复

October 02, 2005 | BY

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Issued: September 2 2005Main contents: Foreign-invested enterprises engaging in loan guarantee business may, on the basis of actual needs and in accordance…

Clp Reference: 3210/05.09.02 Promulgated: 2005-09-02

Issued: September 2 2005

Main contents: Foreign-invested enterprises engaging in loan guarantee business may, on the basis of actual needs and in accordance with the provisions of Article 25(1) of the Implementing Rules for the PRC Foreign-invested Enterprise and Foreign Enterprise Income Tax Law, make provisions for bad debts each year, with the bad debt provisioning year-end balance not exceeding the year-end balance of the actual bank loans to which guarantees are provided without security or pledges by 3%, and deduct them from the taxable income of the same year.
Related legislation: Implementing Rules for the PRC Foreign-invested Enterprise and Foreign Enterprise Income Tax Law, Jun 30 1991, CLP 1991 No.7 p.16

clp reference:3210/05.09.02promulgated:2005-09-02

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