Accounting entries for the final settlement of income tax expenses

Answer: Accounting entries for the final settlement of income tax expenses:

Amount of back-payment of tax

Debit: Taxes payable - income tax payable

Pay taxes

Debit: Taxes payable - income tax payable Pay income tax

Credit: bank deposits

Adjust undistributed profits

Debit: profit distribution - retained profits

Credit: previous years Adjustment of profit and loss

Overpayment of taxes by enterprises

Debit: tax payable - income tax payable

Credit: adjustment of profit and loss in previous years

Adjust undistributed profits

Debit: Adjustment of profit and loss in previous years

Credit: Profit distribution - undistributed profits

The final settlement of corporate income tax refers to the declaration and payment Various economic units of corporate income tax need to submit audit documents to the competent tax authorities when year-end settlement is made to confirm whether the situation reflected in the corporate income tax return is true and reasonable, and whether it complies with the provisions of national tax policies. .

According to Article 2 of the "Administrative Measures for the Final Settlement and Settlement of Enterprise Income Tax of the People's Republic of China": the final settlement shall be made by the taxpayer within 5 months from the end of the tax year or Within 60 days from the date of termination of actual operations, in accordance with tax laws, regulations, rules and other relevant corporate income tax regulations, the taxable income and income tax payable for the current tax year shall be calculated by themselves based on the amount of corporate income tax prepaid monthly or quarterly. , determine the amount of tax that should be paid or refunded in the tax year, fill in the annual corporate income tax return, submit the annual corporate income tax return to the competent tax authority, provide relevant information required by the tax authority, and settle the annual corporate income tax Behavior.

What does final settlement and payment mean?

Final settlement and payment is a Chinese term, and the pinyin is huì suàn qīng jiǎo. It refers to income tax and certain other prepayments. Taxes in the tax regulations are subject to summary settlement and settlement of taxes after the end of the year. Income tax and other taxes are usually calculated based on the taxpayer's annual taxable income. The amount of income is calculated and taxed according to the tax rate stipulated in the tax law. In order to ensure that taxes are paid into the treasury in a timely and balanced manner, in actual work, taxes are generally paid in advance on a monthly or quarterly basis and settled at the end of the year. Any excess will be refunded and any excess will be reimbursed. Collection method. Prepayment is divided into months and quarters. Generally, the tax payable is calculated based on the taxpayer's tax basis for this quarter (month). It is often difficult to completely match the tax basis for the annual final accounts. Therefore, after the end of the year, it is necessary to Based on the taxpayer's final financial accounts, we conduct summary calculations, pay taxes, and implement refunds for excess tax and supplementary payments for prepaid taxes.