Refund first means that there is a tax refund after the annual enterprise income tax is settled, and the tax is owed first and then refunded.
Final settlement refers to the taxpayer's calculation of taxable income and income tax payable for the whole year in accordance with tax laws, regulations, rules and other relevant provisions of enterprise income tax within the specified period after the end of the tax year. According to the income tax paid in advance on a monthly or quarterly basis, the taxpayer determines the amount that should be supplemented or refunded in the year, fills in the annual enterprise income tax return form, submits the annual enterprise income tax return form to the competent tax authorities, and provides relevant information required by the tax authorities for final settlement of the annual enterprise income tax.
Article 54 of the Enterprise Income Tax Law of People's Republic of China (PRC) stipulates that an enterprise shall, within five months after the end of the year, submit an annual enterprise income tax return to the tax authorities for final settlement and tax refund.