This month is the last month of 2023, and at the end of the year, the company will carry out the annual final settlement and declaration work. This process is relatively long. According to the regulations, enterprises must complete the annual enterprise income tax settlement before January to May 31. So, what is the final settlement of enterprise income tax?What are the deduction items for the final settlement of enterprise income tax?What is the process of final settlement of enterprise income tax?Let Boyu Accountant's Xiaobo tell you in detail.
The final settlement of enterprise income tax refers to the calculation of the taxable income and the amount of income tax payable in the current tax year within 5 months from the date of the end of the tax year or within 60 days from the date of termination of the actual operation, in accordance with the provisions of tax laws, regulations, rules and other relevant enterprise income tax, and determine the amount of tax payable or refundable in the tax year according to the amount of monthly or quarterly prepaid enterprise income tax, and fill in the annual tax return of enterprise income tax, and handle the annual tax declaration of enterprise income tax to the competent tax authorities. Provide the relevant information required by the tax authorities and settle the annual enterprise income tax.
The final settlement of enterprise income tax means that after the end of an accounting year, the enterprise calculates its income of the previous year, and summarizes, adjusts, calculates and liquidates the income of the previous year in accordance with certain methods and procedures, so as to determine the tax payable of the enterprise and pay the tax in a timely manner in accordance with the regulations.
The main contents of the final settlement of enterprise income tax include the following aspects:
1. Final settlement. Enterprises need to calculate the income of the previous year in accordance with the requirements of the tax authorities to obtain the taxable income.
2. Clean up. Enterprises need to clean up the income of the previous year in accordance with the provisions of tax laws, regulations, rules and normative documents, including verifying and adjusting various incomes, costs and expenses to ensure that they comply with the regulations.
3. Calculation. On the basis of liquidation, the enterprise needs to calculate the tax payable in accordance with the prescribed tax rate and calculation method.
4. Settle out. Enterprises need to pay the tax payable in time and complete the tax settlement within the specified time.
In the process of final settlement, enterprises need to operate in accordance with the requirements of the tax authorities, including providing relevant information, filling in **, paying taxes, etc. At the same time, enterprises also need to pay attention to risk prevention and avoid tax risks caused by improper operation.
There are 5 aspects, which are as follows:
1. Costs.
The normal costs and expenses incurred by an enterprise in the course of operation can be used as deductions for the final settlement of enterprise income tax. Including salaries, rent, depreciation, repair costs, advertising costs, travel expenses, insurance premiums, etc. These costs must be directly related to the production and operation activities of the enterprise, and valid invoices or vouchers can be provided.
2. Donation expenditure.
Donation expenses made by enterprises to public welfare institutions and charitable organizations that meet the requirements of laws and regulations during the tax year can enjoy a fixed deduction in the final settlement of enterprise income tax. However, it should be noted that the donation expenditure must comply with the relevant provisions of the tax law and must obtain the donation certificate recognized by the tax authority.
3. R&D expenses.
Expenditures incurred by enterprises in conducting scientific research and experimental development can enjoy the pre-tax deduction of enterprise income tax final settlement. Including the salary of scientific researchers, the purchase cost of experimental equipment and materials, etc. For the specific scope and standards of R&D expenses, enterprises should make reasonable determinations in accordance with the provisions of the tax law, and keep relevant vouchers and materials.
4. Staff education funds and training expenses.
The expenditure of an enterprise in the education and training of its employees can be used as a deduction item in the final settlement of enterprise income tax. Including staff training fees, advanced study fees, vocational qualification examination fees, etc. However, these expenses must be directly related to the production and business activities of the enterprise, and must be based on invoices or vouchers, otherwise they will not be deducted.
5. Other deductible items.
In addition to the above-mentioned deductions, there are also other deductible items in the final settlement of enterprise income tax, such as the "six taxes and one fee" paid such as consumption tax, urban construction tax, resource tax, land value-added tax, export tariff and education surcharge, and tax incentives enjoyed by technology development zones, economic and technological development zones and high-tech enterprises.
The above is an introduction to the deduction items of enterprise income tax final settlement. When conducting the final settlement, the enterprise shall reasonably identify and declare these deductible items in accordance with the provisions of the tax law, so as to reduce the tax burden of the enterprise and carry out financial management in accordance with laws and regulations.
The enterprise income tax final settlement process includes the following six aspects:
1. Fill in the tax return form and attach relevant materials.
Enterprise taxpayers are required to make tax adjustments according to the financial statements, fill in the annual tax return and its schedules, and then file the annual tax declaration with the competent tax authority. In addition to the above-mentioned income tax returns and their schedules, relevant materials should also be provided, such as financial and accounting year final statements and their explanatory materials, contracts, agreements and certificates related to tax payment, tax administration certificates for overseas business activities and tax payment certificates in other places, relevant supporting documents issued by domestic or overseas notary public institutions, and other relevant documents required by the in-charge tax authorities.
2. The in-charge tax authorities receive the tax returns or withholding and payment submitted by the enterprise taxpayers or withholding agents.
After collecting and paying the tax report form, the basic information such as its name, address, bank account number and other basic information shall be reviewed, and the content of the declaration shall be reviewed, and the main audit content shall be whether the tax items, tax rates and tax calculation basis shall be complete and correct, whether the tax amount calculation is accurate, whether the attached information is complete, whether it conforms to the logical relationship, whether the tax adjustment is carried out, etc.
3. After reviewing the tax returns and other relevant materials submitted by the enterprise, the in-charge tax authorities will issue an audit opinion, and the enterprise needs to make corresponding adjustments according to the opinion.
4. After the adjustment is made according to the audit opinions of the in-charge tax authorities, the enterprise needs to submit the adjusted results to the in-charge tax authorities again.
5. The in-charge tax authorities will review the adjusted declaration form and other relevant materials again, and if there are still problems, they will issue supplementary audit opinions, and the enterprise needs to make adjustments again according to the supplementary opinions.
6. After the final settlement of enterprise income tax is completed, the tax involved shall be paid in full and in a timely manner within the specified time.
The above is the general process of enterprise income tax final settlement, and the specific operation may vary depending on the region and the situation of the enterprise.
*:The article is comprehensively compiled from the network by Hainan Boyu Accounting, if you need **, please indicate the source. The content is for reference only, subject to actual consultation, if it involves infringement, please contact to delete.