Core Viewpoint - The article provides a comprehensive overview of the policies regarding asset loss tax deductions for taxpayers, emphasizing the types of losses that can be deducted and the necessary documentation required for such deductions [2]. Group 1: Types of Asset Losses - Asset losses include cash losses, deposit losses, bad debt losses, loan losses, equity investment losses, fixed asset and inventory losses due to theft, damage, or natural disasters, among other losses [4]. Group 2: Deduction Year Regulations - Actual asset losses must be reported in the year they occur and are recognized in accounting, while statutory asset losses can be recognized in the year they meet the conditions set by relevant tax regulations [6]. - If an asset loss that has been deducted is later recovered, the recovered amount must be reported as income in the year it is received [7]. Group 3: Bad Debt Losses - For bad debt losses related to receivables and prepayments, specific documentation is required, including court announcements for bankruptcy, legal judgments, or proof of business closure [9]. - Receivables overdue for more than three years can be recognized as bad debt losses if they have been accounted for as losses, with a special report required [9]. Group 4: Debt Investment Losses - Debt investment losses must be supported by original documents, contracts, and accounting records, with additional evidence required for specific circumstances such as bankruptcy or natural disasters [10]. Group 5: Equity Investment Losses - Documentation for equity investment losses includes proof of the investment basis, bankruptcy announcements, and other legal documents confirming the loss [15]. Group 6: Losses from Criminal Cases - Losses incurred due to criminal cases can be deducted if they are substantiated by relevant legal documents, such as police reports or court judgments [12]. Group 7: Treatment of Losses from Domestic and Foreign Operations - Asset losses from domestic and foreign operations must be accounted for separately, with losses from foreign operations not deductible when calculating domestic taxable income [13]. Group 8: Reporting Asset Losses - Companies must report asset losses using the specified tax forms without submitting supporting documents, which should be retained for verification [14].

Core Viewpoint - The article discusses the importance of asset loss tax deductions in corporate income tax reporting and provides guidance on how to declare these losses, including policy highlights, case studies, and key considerations [1]. Policy Highlights - Asset loss refers to losses incurred by a company during its operational activities that are related to taxable income, including cash losses, deposit losses, bad debts, loan losses, equity investment losses, and losses from fixed assets and inventory due to various factors [3][4]. - Asset losses are categorized into actual asset losses and statutory asset losses, with the former occurring during the disposal or transfer of assets and the latter recognized under specific tax regulations without actual disposal [5][7]. - Actual asset losses should be declared in the year they occur and are accounted for, while statutory asset losses require relevant documentation to confirm eligibility for deduction [9]. Deduction Timing - Actual asset losses must be reported in the year they are recognized in accounting records, while statutory asset losses should be declared in the year when the necessary documentation is retained [9]. Previous Year Losses - Actual asset losses that were not deducted in the year they occurred can be retroactively claimed for up to five years, with certain exceptions allowing for extended periods upon approval from tax authorities [11]. - Statutory asset losses must be deducted in the reporting year [12]. Case Study - A case study involving Company A illustrates the accounting and tax treatment of inventory losses due to mismanagement, detailing the calculation of asset loss amounts and the necessary tax adjustments [14][15][18]. Documentation Retention - Companies must retain comprehensive documentation related to asset losses to ensure compliance with tax regulations, including evidence of loss, accounting records, and tax documentation [19]. - Common documentation for fixed asset losses includes internal responsibility recognition, fixed asset inventory lists, and loss explanations [21]. - For bad debt losses, relevant contracts, court documents, and proof of debtor status are required [23][24]. - Documentation for equity investment losses includes proof of investment basis, bankruptcy announcements, and administrative decisions regarding the invested entity [25].