The Ministry of Finance issued the “Guidelines on Major Tax Preferential Policies for Mergers and Restructurings of Enterprises”. Among them, it is mentioned that if the taxable income confirmed by the debtor's corporate debt restructuring accounts for 50% or more of the taxable income of the enterprise for the current year, then the debt restructuring income can be evenly included in the taxable income for each year within a period of 5 tax years. Where an enterprise undertakes debt-to-equity transactions, the debtor does not confirm the income from the debt settlement business for the time being, and other income tax matters relating to the enterprise remain unchanged. Creditors have yet to confirm losses in the debt-to-equity business; the tax basis for equity investment is determined on the basis of the original claim. Other income tax matters relating to the enterprise remain unchanged.

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