What are the tax benefits you can enjoy when disposing of debt encumbered assets
Issued on: 2023.11.18

According to the data of the State Financial Supervision and Administration, as of the end of September 2023, the balance of non-performing loans of banking financial institutions was 4 trillion yuan, an increase of 183.2 billion yuan from the beginning of the year. In order to continue to support banking financial institutions and financial asset management companies in disposing of non-performing debts and effectively preventing financial risks, the Ministry of Finance and the State Administration of Taxation issued Notice No. 35. The announcement further clarified the preferential tax policy for financial institutions to dispose of debt-offset assets. The author suggests that banking financial institutions, financial asset management companies, in the disposal of debt assets, compliance to enjoy various tax incentives.

VAT: Differential tax is optional.

Stamp duty, deed tax: meet the conditions can be reduced.

Property tax, urban land use tax: pay attention to the specific provisions.


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Source of this article: China Taxation News, author: Xu Jianguo Xin Zhengping, author unit: Zhenjiang Dantu District Tax Bureau, State Administration of Taxation, follow [M&T] Subscribe to more content.


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