How to account for the income tax refund in the previous year

Mondo Finance Updated on 2024-02-15

1. Final settlement and payment of enterprise income tax.

According to Article 54 of the Enterprise Income Tax Law, enterprise income tax shall be paid in advance on a monthly or quarterly basis. Enterprises shall, within 15 days from the date of the end of the month or quarter, submit the prepayment of enterprise income tax return to the tax authorities and pay the tax in advance. The enterprise shall, within five months from the date of the end of the year, submit the annual enterprise income tax return to the tax authorities, and settle the final settlement and tax refund payable.

Therefore, the quarterly prepayment of enterprise income tax and the annual final settlement are paid;

Among them, the quarterly advance payment is calculated and paid according to the accounting profit and the corresponding enterprise income tax rate of each quarter;

Within five months from the date of the end of the year, the final settlement of enterprise income tax shall be carried out, and the annual accounting profit shall be adjusted to tax profit through tax adjustment, and the actual amount of enterprise income tax payable shall be determined;

The difference between the amount of income tax payable determined by the annual final settlement and the quarterly prepaid enterprise income tax is the amount of tax refunded (supplemented) for the income tax of the previous year.

2. Apply for income tax refund.

After verifying that there are no errors, the enterprise can apply to the competent tax authority for income tax refund for the previous year. The specific application process is as follows:

1.Fill in the "Annual Enterprise Income Tax Settlement Return": Enterprises should fill in the "Enterprise Income Tax Annual Settlement and Payment Return" in accordance with the requirements of the tax authorities and affix the official seal.

2.Submission of relevant supporting materials: Enterprises should submit relevant supporting materials to the in-charge tax authorities, such as the Annual Return Form for Enterprise Income Tax, financial statements, tax payment vouchers, etc.

3.Pending review: The in-charge tax authority will review the application of the enterprise and verify whether the information provided by the enterprise is true and complete.

3. Accounting processing.

1) The amount of income tax refundable in the previous year.

1.Adjust Prior Year Profit and Loss Adjustments:

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable - Income Tax Payable.

2.Knot**

Debit: Profit distribution - undistributed profit.

Credit: Prior Year Profit and Loss Adjustment.

3.Receipt of tax refund:

Borrow: Bank deposit.

Credit: Tax Payable - Income Tax Payable.

2) The amount of income tax payable in the previous year.

1.Adjust Prior Year Profit and Loss Adjustments:

Debit: Tax Payable - Income Tax Payable.

Credit: Prior Year Profit and Loss Adjustment.

2.Knot**

Debit: Profit and loss adjustments for prior years.

Credit: Profit Distribution - Undistributed Profits.

3.Back Taxes:

Debit: Tax Payable - Income Tax Payable.

Credit: Bank deposits.

4. Precautions.

When making accounts for the income tax refund of the previous year, enterprises need to pay attention to the following:

1.Ensure the accuracy of data: Enterprises should carefully check the tax statements and accounting data to ensure the accuracy of the data and avoid errors.

2.Comply with tax policy regulations: Enterprises should comply with tax policy regulations and apply for income tax refund and account making in accordance with the prescribed procedures.

3.Timely handling of accounts: Enterprises should handle the accounts of income tax refunds in a timely manner so as not to affect the normal operation and tax compliance of the enterprise.

4.Maintain communication and collaboration: Enterprises should maintain communication and collaboration with the competent tax authorities to keep abreast of policy changes and review progress to ensure the smooth approval of income tax refund applications. Controversy Project

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