What does write-off mean in layman terms? Write-off means that after the execution of the contract, the processing trade unit submits the "Processing Trade Registration Manual", special import and exp

What does write-off mean in layman terms? Write-off means that after the execution of the contract, the processing trade unit submits the "Processing Trade Registration Manual", special import and export declaration forms and other valid data to the customs. It is a business in the customs follow-up management to check the import, export, consumption, etc. conditions under the contract to determine the tax collection, exemption, refund, and repayment. Write-offs include loan write-offs, bad debt write-offs, import and export foreign exchange receipts and payments, processing trade write-offs, etc. Loan write-off is the abbreviation of "bad loan write-off". It is a system in which banks write off bad debt loans or loan losses in accordance with regulations. In layman's terms, loan write-off is an accounting system, which actually allows banks to deduct loan losses before tax when calculating corporate income tax. Write-off means that the assets are eliminated from the books and treated as losses in the company's accounts. . Pre-tax write-off means that this part of the loss can be deducted when calculating income tax, while post-tax write-off means that this part of the loss is not allowed to be deducted when calculating income tax. Loan write-off only treats the bank loan as a loss in the accounting, but legally, the bank still has the right to pursue the loan. This is the so-called "internal verification but no verification". Advantages: Washing away some dead debts will reduce the bank's overall non-performing loan ratio and increase the bank's disposal amount of non-performing loans for the year. Moreover, after the write-off, the bank can still claim claims, write-off records will be kept, and the recovered written-off loans will be included in non-operating income. Disadvantages: It may bring risks to the bank, and the actual loss amount of the loan after write-off will be greater than the loss caused by other recovery and disposal methods. If the conditions for write-off are not met, there will be compliance risks and regulatory penalties may be imposed. . When a bank loan is written off and settled, the bank's credit system will display a bad credit record. If the user wants to eliminate this bad record, he must first confirm that the bad record is not caused by the user. He can go to the bank Complain to the Credit Reference Center and it will be deleted if the situation is true. Usually the user's personal bad records will be kept for five years, and the records will be automatically deleted after five years.