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Can the penal sum due to breach of contract be credited from the pre-tax profit?

Posted On: 2008-8-1      Viewed by 1211 People

 

In accordance with Article 56 of <Regulation on Pre-tax Deduction of Business Income Tax>, the penal sum( including penal interest) paid according to the economic contract, fine and legal cost can be deducted.

Your company shall take the receiving voucher and the contract and enter the items into account.

 



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