Can exchange losses be offset against corporate income tax? Is exchange loss deductible for enterprise income tax? According to Article 39 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China (Order No. 512 of the State Council of the People's Republic of China) The exchange loss incurred when the liabilities are converted into RMB at the middle rate of the spot RMB exchange rate at the end of the period is allowed to be deducted, except for the part that has been included in the relevant asset costs and related to profit distribution to the owners. Do you understand this explanation?
