How to deal with the surplus reserve when the subsidiary withdraws it from the parent company as a loss?

General statutory provident fund and arbitrary provident fund are based on net profit, but the adjusted taxable income cannot be calculated according to total profit or enterprise income tax.

The undistributed profit at the beginning of the year should not be included in the calculation of the statutory surplus reserve base.

If there is a loss in the previous year (that is, the undistributed profit balance at the beginning of the year is negative), the loss in the previous year should be made up first, and then the surplus reserve should be drawn.