First, understand the return policy.
First of all, enterprises need to know the specific policies of the tax authorities on the refund of individual tax expenses, including the return ratio, return period, application conditions and so on. This information can usually be obtained through the official website of the tax authorities or relevant notices.
Second, the confirmation of fee income
When an enterprise receives the tax handling fee returned by the tax authorities, it shall be recognized as income. This part of the income belongs to other business income of the enterprise and needs to be accounted for in accordance with relevant regulations.
Third, accounting treatment.
1. After the enterprise receives the refund, it should be credited to the bank deposit or cash account, and also credited to the "other business income" account. The specific entries are: debit: bank deposit/cash, and credit: other business income.
Because this part of income is related to the daily business activities of the enterprise, it should be included in the scope of enterprise income tax. When paying taxes, enterprises should calculate and pay the corresponding enterprise income tax in accordance with the provisions of the tax law.
3. Enterprises should also pay attention to distinguish between the accounting treatment of tax refund and the accounting treatment of withholding personal income tax to ensure that the accounting of the two is clear and accurate.
Four, tax returns and data retention
Enterprises should pay attention to timely reporting and paying taxes when dealing with individual tax refund accounts, and keep relevant vouchers and materials as required. These materials include the return notice of the tax authorities, accounting vouchers of enterprises, etc. For inspection by tax authorities.
To sum up:
The accounting treatment of individual tax refund for small-scale taxpayers involves income confirmation, accounting treatment, tax declaration and other links. Enterprises need to understand the policy requirements, standardize the processing flow, and ensure that the accounting treatment of tax refund conforms to the provisions of the tax law.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 17 stipulates:
Pay a 2% handling fee to the withholding agent according to the tax withheld.
People's Republic of China (PRC) tax collection management law
Article 32 provides that:
Taxpayers and withholding agents may, in accordance with the provisions of the competent tax authorities in the State Council, entrust relevant units and individuals to handle tax matters.
Detailed Rules for the Implementation of People's Republic of China (PRC) Tax Collection and Management Law
Article 97 provides that:
The information kept confidential by tax authorities and tax officials for taxpayers and withholding agents mainly includes the business secrets and personal privacy of taxpayers and withholding agents. The illegal tax acts of taxpayers and withholding agents do not belong to the scope of confidentiality.