On March 10, 2000, in order to strengthen the management of pre-tax loss carryforwards for enterprise income tax, the Local Taxation Bureau of Beijing Municipality, based on the spirit of the "Measures for Examination and Approval Administration of Pre-tax Loss Carryforward for Enterprise Income Tax" (Guoshui Fa [1997] No. 189) issued by the State Administration, and in conjunction with the actual situation in our city, formulated the examination and approval management measures for pre-tax loss carryforward for enterprise income tax. The main contents are as follows:
I. Scope of application for pre-tax loss carryforward
For taxpayers within our city that conduct independent economic accounting and submit enterprise income tax return forms, accounting statements, and other materials to the local taxation authorities as required, any annual losses incurred may be applied to offset profits from the next tax year; if the profits from the next tax year are insufficient for offsetting, the offset can be extended annually, but shall not exceed five years in total.