Legal basis: Enterprise Income Tax Law of People's Republic of China (PRC).
Article 6 The income in monetary form and non-monetary form obtained by an enterprise from various channels shall be the total income. Including: (1) income from sales of goods; (2) Income from providing labor services; (3) Income from property transfer; (four) dividends, bonuses and other equity investment income; (5) Interest income; (6) Rental income; (7) Royalty income; (8) Receiving donation income; (9) Other income.
Article 18 The losses incurred by an enterprise in a tax year may be carried forward to the following year to be made up with the income of the following year, but the longest carrying-forward period shall not exceed five years.