The fiscal and taxation department introduced a tax support policy to reduce corporate leverage

Abstract The reporter learned from the Ministry of Finance on the 6th that the Ministry of Finance and the State Administration of Taxation recently issued the "Notice on Implementing the Tax Support Policy for Reducing Enterprise Leverage Ratio" to further implement the taxation policy for reducing the leverage ratio of enterprises. The notice requires that the company meets the equity requirements of the tax law...
The reporter learned from the Ministry of Finance on the 6th that the Ministry of Finance and the State Administration of Taxation recently issued the "Notice on Implementing the Tax Support Policy for Reducing Enterprise Leverage Ratio" to further implement the taxation policy for reducing corporate leverage.
The notice requires that the company's equity (asset) acquisition, merger, debt restructuring and other reorganization activities that meet the conditions stipulated by the tax law may enjoy the preferential tax deduction policy for corporate income tax according to the tax law. Enterprises investing in non-monetary assets can enjoy the enterprise income tax policy in installments within 5 years. When a company goes bankrupt or writes off and liquidates corporate income tax, it can deduct the relevant liquidation expenses, employee wages, social insurance fees, and statutory compensation fees before tax.
In addition, the loss of creditor's rights in accordance with the provisions of the tax law may be deducted when calculating the taxable income of the enterprise income tax. If the financial enterprise withdraws the loan loss reserve in accordance with the provisions of the tax law, it can be deducted before the enterprise income tax.
In the process of corporate restructuring, the enterprise transfers all or part of the physical assets and their associated claims, liabilities and labor to other units and individuals through mergers, divisions, sales, replacements, etc., including the goods and real estate involved. If the land use right transfer behavior is in compliance with the regulations, no value-added tax shall be levied.
The notice stated that the land value-added tax, deed tax and stamp duty involved in the enterprise restructuring and restructuring are subject to the relevant preferential policies. Taxpayers who meet the conditions of the credit asset securitization policy can enjoy relevant preferential policies.
The notice clearly stated that the relevant tax policies related to the reduction of leverage cover a wide range of transactions, involving a wide range of issues and many policy contents. The finance and taxation departments at all levels should attach great importance to it, further strengthen learning and training, familiarize and master the policy content; strengthen publicity and guidance to taxpayers, track the implementation and implementation effects of tax policies, strengthen research feedback, and timely understand the problems encountered in implementation. The study proposes to adjust and improve tax policies.

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