Circular on the Policy of Deducting Loan Loss Reserves of Financial Enterprises before Enterprise Income Tax
关于金融企业贷款损失准备金企业所得税税前扣除政策的通知
Pre-tax allocation of loan loss reserves for lease financing receivables allowed for financial enterprises.
(Issued by the Ministry of Finance and the State Administration of Taxation on January 29 2012 and effective as of January 1 2011 to December 31 2013.)
(财政部、国家税务总局于二零一二年一月二十九日发布，自二零一一年一月一日起至二零一三年十二月三十一日止执行。)
Cai Shui [2012] No.5
Finance Departments (Bureaux), Offices of the State Administration of Taxation and local taxation bureaux of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans and the Finance Bureau of Xinjiang Production and Construction Corps:
财税 [2012] 5号
Pursuant to relevant provisions of the PRC Enterprise Income Tax Law (中华人民共和国企业所得税法) and the Implementing Regulations for the PRC Enterprise Income Tax Law (中华人民共和国企业所得税法实施条例), we hereby notify you on policy issues relating to pre-tax deduction of loan loss reserves allocated by financial enterprises such as policy banks, commercial banks, finance companies, urban and rural credit cooperatives and lease financing companies as follows:
1. The scope of loan assets for which pre-tax allocation of loan loss reserves is permitted shall be as follows:
各省、自治区、直辖市、计划单列市财政厅（局）、国家税务局、地方税务局，新疆生产建设兵团财务局：
(1) loans (including mortgage, pledge and guarantee loans);
(2) risk assets that have the features of loans, such as bank card overdrafts, discounts, credit advances (including bank acceptance advances, letter of credit advances and guarantee advances), documentary drafts for imports and exports, interbank loans and lease financing receivables; and
根据《中华人民共和国企业所得税法》及《中华人民共和国企业所得税法实施条例》的有关规定，现就政策性银行、商业银行、财务公司、城乡信用社和金融租赁公司等金融企业提取的贷款损失准备金税前扣除政策问题，通知如下：
(3) foreign loans for which a financial institution acts as the onlender and bears the responsibility for repaying the loan to the foreign party, including assets such as loans from international financial organizations, foreign buyer credit, foreign government loans, non-tied loans from the Japan Bank for International Cooperation and foreign government mixed loans.
2. The formula for calculating the loan loss reserve that a financial enterprise is permitted to deduct before tax for the year in question is as follows:
一、准予税前提取贷款损失准备金的贷款资产范围包括：
loan loss reserve permitted to be deducted before tax for the year in question = balance of loan assets at year end for which allocations to a loan loss reserve are permitted × 1% – balance of the loan loss reserve deducted before tax as at the end of the previous year.
If the number calculated by a financial enterprise using the foregoing formula is negative, it shall correspondingly revise upward its taxable income for the year in question.
（一）贷款（含抵押、质押、担保等贷款）；
3. For assets in respect of which a financial enterprise does not bear risks or losses, such as entrusted loans, agency loans, investments in sovereign bonds, dividends receivables, reserves deposited with the central bank, claims and equity stripped from the financial enterprise, fiscal discounts receivables and deposits from the central bank, no loan loss reserve may be allocated therefor and deducted before tax.
4. When a financial enterprise incurs a qualifying loan loss, it shall first set the same off against the loan loss reserve that has been deducted before tax, and if the reserve is insufficient to set off the loss, it may truthfully deduct the excess when calculating its taxable income for the year in question.
（二）银行卡透支、贴现、信用垫款（含银行承兑汇票垫款、信用证垫款、担保垫款等）、进出口押汇、同业拆出、应收融资租赁款等各项具有贷款特征的风险资产；
5. With respect to the policy for pre-tax deduction of agricultural-related loan and small and medium enterprise loan loss reserves of financial enterprises, if matters are handled in accordance with the Ministry of Finance and State Administration of Taxation, Circular on Extending the Period of Implementation of the Policy for the Pre-tax Deduction of the Agricultural-related Loan and Small and Medium Enterprise Loan Loss Reserves of Financial Enterprises (Cai Shui [2011] No.104), Articles 1 to 4 hereof shall not apply.
6. This Circular shall be effective as of January 1 2011 to December 31 2013.
clp reference:3230/12.01.29prc reference:财税 [2012] 5号promulgated:2012-01-29effective:2011-01-01（三）由金融企业转贷并承担对外还款责任的国外贷款，包括国际金融组织贷款、外国买方信贷、外国政府贷款、日本国际协力银行不附条件贷款和外国政府混合贷款等资产。
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