Profits Tax - Bad debt

1.Recovery of loan to staff previously written off (40000)
放在 Less excluded income，而且是沒了括號。

為什麼要在 income 減，而且是沒了括號？
因為以前年度written off loanto staff時，是不能作為支出扣稅的，所以今年收回壞帳時，收入一樣是no taxable的，即不用交稅的，所以要在評稅的profit中減去。
2.Recovery of trade debts previously allowed
正如你說的，trade debts 的 bad debt本來是可扣減，在前幾年已經作為支出扣減稅項，所以宜家recovery番，就要作為收入來評稅。

First, you have to get a clear concept of why loan to staff written off in last year as an expense was not allowable for deduction for profits tax purposes. This amount had been added back in the tax computation i.e. assessable profit is higher.This 'expense' is not related to the business, not wholly, necessarily and exclusively for the production of the income of the business. It is of a private in nature. This is the principle of tax. Income +
However, when you received the staff loan previousely written off in last year, you have to record this in current year's books as Dr. Bank Cr. Staff Loan Recovered ( this will shown in the Profit and Loss as Sundry Income ). By the same logic, this 'income' is not taxable with reason stated as above. This is an excluded income. Income -
Less excluded income with no bracket. We use bracket to mean a minus, a dubtraction from the total. Now, a word 'Less' has been used, so no more need to put a bracket in the Excluded Income again.