Circular of the State Administration of Taxation on Enhancing the Management over Pre-tax Deduction of loss of Financial and Insurance Enterprises from Bad and Doubtful Accounts

Circular of the State Administration of Taxation on Enhancing the Management over Pre-tax Deduction of loss of Financial and Insurance Enterprises from Bad and Doubtful Accounts


Circular of the State Administration of Taxation on Enhancing the Management over Pre-tax Deduction of loss of Financial and Insurance Enterprises from Bad and Doubtful Accounts

Guo Shui Fa [1999] No.213

November 16, 1999

To the national and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically listed in the state plan:

In order to strengthen and standardize pre-tax deduction of loss of bad and doubtful account management in financial and insurance enterprises, upon study, we hereby give our notice of relevant issues as follows:

Article 1 Loss of enterprises from doubtful and bad accounts shall be deducted according to the actual amounts incurred. Method of drawing reserve may be adopted upon the approval of the tax authorities.
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