What happens if the new enterprise loses 20%?

There will be no industrial and commercial tax measures if the losses of newly-established enterprises reach 20%. You can make adjustments at the end of the year when the final settlement is made. According to the provisions of the tax law, where the tax law conflicts with the financial system, it will be increased or decreased according to the provisions of the tax law. The inland revenue department will not adjust.

Because you are a newly established company, the tax authorities do not require you to do an audit within two years of losing money. There is no need to hire a certified public accountant to do the audit. But if you want to make up for the loss next year, you must do an audit at the end of the year, and the CPA will issue an audit report. The CPA will make the final settlement for you at the end of the year. You will submit the audit report to the tax bureau for approval. After approval, the losses can be made up next year.

There is no good way to reduce losses, only to reduce costs and expenses, increase income, and reduce costs and expenses in accordance with the provisions of the tax law when settling accounts at the end of the year. The tax bureau sees that your loss is not the year-end profit, but the total profit after the year-end settlement.

If you want to do this well, you need to plan ahead, and don't wait until the year-end loss is big to think about it. It is too late.