What should enterprises pay attention to when applying the policy of extending the maximum carry-over period of losses of enterprises in difficult industries that are greatly affected by the epidemic

What should enterprises pay attention to when applying the policy of extending the maximum carry-over period of losses of enterprises in difficult industries that are greatly affected by the epidemic to 8 years in 2020? According to Announcement No.8, in 2020, the longest carry-over period will be extended from 5 years to 8 years for the losses incurred by enterprises in difficult industries that are greatly affected by the epidemic.

Enterprises in transportation, catering, accommodation, tourism (referring to travel agencies and related services, scenic spot management) and other difficult industries shall be classified according to the current national economic industries. The main business income of enterprises in difficult industries in 2020 should account for more than 50% of the total income after deducting non-tax income and investment income in that year.

Taxpayers decide for themselves whether they belong to enterprises in difficult industries and whether the income ratio of their main business meets the requirements. If losses occur in 2020 and enjoy the policy of extending the carry-over period of losses from 5 years to 8 years, the Statement on the Extension of the Carry-over Period of Losses (hereinafter referred to as the Statement) shall be submitted through the Electronic Taxation Bureau when the enterprise income tax is settled in 2020. Taxpayers should fill in the taxpayer's name, taxpayer identification number (unified social credit code) and the specific industry in the "Declaration Form", and be responsible for the authenticity, accuracy and completeness of the information that meets the policy requirements, the proportion of main business income meets the requirements, and the difficult industries that have been verified.