债务计税 vs 债权计税

English translation: debt vs loan

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Chinese term or phrase:债务计税 vs 债权计税
English translation:debt vs loan
Entered by: wonita (X)

11:58 Feb 12, 2010
Chinese to English translations [PRO]
Bus/Financial - Law: Taxation & Customs
Chinese term or phrase: 债务计税 vs 债权计税
债务人应当按照支付的债务清偿额低于债务计税基础的差额,确认债务重组所得;债权人应当按照收到的债务清偿额低于债权计税基础的差额,确认债务重组损失。

看不懂,请高人指点。
Bin Tiede (X)
Germany
Local time: 20:25
debt vs loan
Explanation:
The borrower (debtor) can confirm the gain (income) generated from debt restructing by deducting the debt repayment amount from the taxation basis of the debt;
The lender (creditor) can confirm the loss generated from debt restructing by deducting the loan payment amount from the taxation basis of the loan.



计税基础 = taxation basis

everything (loan, loss, gain,earning, etc.) should be recorded in the books & filed accodingly when paying taxes.
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karcsy
Local time: 03:25
Grading comment
Thank you, Karcsy, your answer has been very helpful.
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Summary of answers provided
3debt vs loan
karcsy
Summary of reference entries provided
Tax basis & Debt Restructuring
Shirley Lao

  

Answers


5 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
债务 vs 债权
debt vs loan


Explanation:
The borrower (debtor) can confirm the gain (income) generated from debt restructing by deducting the debt repayment amount from the taxation basis of the debt;
The lender (creditor) can confirm the loss generated from debt restructing by deducting the loan payment amount from the taxation basis of the loan.



计税基础 = taxation basis

everything (loan, loss, gain,earning, etc.) should be recorded in the books & filed accodingly when paying taxes.

karcsy
Local time: 03:25
Native speaker of: Native in ChineseChinese
PRO pts in category: 24
Grading comment
Thank you, Karcsy, your answer has been very helpful.
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Reference comments


22 hrs
Reference: Tax basis & Debt Restructuring

Reference information:
Tax basis: Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes. This can be determined by several methods. For a purchased investment, the tax basis is the amount paid. If inherited, the tax basis is the value of the stock on the date of the original owner's death. If received as a gift, the tax basis is the amount that was originally paid for the investment, unless the market value of the investment on the date the gift was given was lower. also called cost basis or basis.
http://www.investorwords.com/4886/tax_basis.html

Debt restructuring: A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage.
http://www.investopedia.com/terms/d/debtrestructuring.asp


Any debt involves two parties, the creditor with the creditor's rights to get the debt repayment and the debtor with the debt obligations to repay the debt.

For example, Company A (the debtor) owed Company B (the creditor) $10000. However, due to financial difficulties, Company A was unable to repay the debt in full. Thus, Company A and Company B decided to settle the debt through debt restructuring under which Company A repaid $9000 to Company B as a full settlement of the debt.

To Company A (the debtor), this $1000 should be recognized (确认; that is the term used in accounting) as a "taxable gain or income" according to China's existing accounting practices. Conversely, to Company B (the creditor), this $1000 should be recognized as a "taxable loss" so that this taxable loss should be deducted from its gross income before taxation.


You may also refer to these Powerpoint presentations for China's taxation practices concerning debt restructuring.

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Note added at 22 hrs (2010-02-13 10:17:58 GMT)
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http://evenementiel.ccifc.org/bj/GT/Fiscalite/China Corporat...

Shirley Lao
Taiwan
Native speaker of: Native in ChineseChinese
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