The Ministry of Finance has simplified the procedures for companies reporting losses from overseas investments. Previously, when businesses faced capital reductions to offset losses, mergers, bankruptcies, or liquidations in their foreign investments, they were required to provide documents verified by foreign embassies or representative offices. According to the latest directive, except for investments in Mainland China, if companies can obtain one of the following three types of documents, they are exempt from such verification

The actual reasons for bad debt losses are different, and the supporting documents required are different.