Policy Documents - The main policy documents regarding corporate income tax for policy-based relocation include the announcement by the State Administration of Taxation on the management measures for corporate policy-based relocation income tax [4][5]. Definition of Policy-Based Relocation - Policy-based relocation refers to the complete or partial relocation of enterprises under government leadership due to public interest needs, including national defense, infrastructure, public welfare projects, and urban redevelopment [4][5]. Relocation Income - Relocation income for enterprises includes compensation received from external sources (including government) and income from the disposal of assets during relocation. Income from the disposal of inventory during relocation is treated as normal operating income and not classified as relocation income [6]. Relocation Expenditure - Relocation expenditure includes costs incurred during the relocation process and asset disposal costs due to relocation. Specific expenditures include employee relocation costs, wages during downtime, and costs related to asset storage and installation [7]. Tax Treatment of Relocation Assets - Different categories of relocation assets require distinct calculations for tax costs and depreciation or amortization periods, including assets that can be used immediately, those needing major repairs, land acquired through exchange, and newly purchased assets during relocation [8][9][10][11][12]. Relocation Income Calculation - The relocation income, after deducting relocation expenditures, constitutes the relocation profit, which must be reported in the tax calculation for the year of relocation completion [14]. Losses from Relocation - If the relocation income minus expenditures results in a negative figure, it is classified as a relocation loss, which can be treated for tax purposes in one of two ways: as a one-time deduction or spread over three years [15][17]. Completion Year of Relocation - The completion year of relocation is defined by specific criteria, including the completion of relocation planning and achieving a certain level of operational income [16][19]. Loss Carryforward - Enterprises with unutilized losses from previous years can deduct these losses from taxable income during the relocation period, provided they meet certain conditions [21]. Filing Requirements - Enterprises must submit relevant relocation documentation to tax authorities by May 31 of the following year after the start of relocation. Failure to do so may result in the relocation being treated as non-policy-based [23][24]. Tax Declaration Examples - A case study of Company A illustrates the accounting treatment of relocation compensation and the necessary tax declaration forms to be filled out during the relocation process [25][26][29].