What are the penalties for making up corporate income tax to make up for losses?

There will be no penalty for making reasonable adjustments according to the tax law. Generally speaking, during a tax audit, underpayment or non-payment of taxes should be imposed. A fine of not less than 0.5 times but not more than 5 times. If your taxable income is still negative after adjustment, no tax is due and there is no penalty.

How to calculate loss compensation for corporate income tax

According to Article 28 of the Implementing Rules for the Interim Regulations of the People’s Republic of China on Enterprise Income Tax: Regulations (the People’s Republic of China and the People’s Republic of China) The period for making up for losses stipulated in Article 11 of the Regulations for the Implementation of the State Enterprise Income Tax Law) means that if a taxpayer suffers a loss in a certain tax year, it is allowed to use the taxable income of subsequent years to make up for it. If the shortfall is made up in one year, it can be made up continuously year by year. The longest period shall not exceed 5 years. Regardless of profits or losses within 5 years, it will be calculated as the actual compensation period. When the income obtained by an enterprise in the tax year can make up for the total losses of the previous five years, regardless of whether all losses occurred in the previous five years, the income of this year can only make up for the losses incurred in the previous five years. For example, an enterprise obtained an income of 200 in 2000. Ten thousand yuan, but there was a loss of 200,000 yuan in 1994, a loss of 100,000 yuan in 1995, a profit of 10,000 yuan in 1996, and a loss of 450,000 yuan in 1997, 1998, and 1999. The income in 2000 can make up for the losses in 1995 and 1999. For the losses that occurred in the five years of 1996, 1997, 1998, and 1999 and were not made up in other years, even if the profit making up period in 1996 cannot be extended.

Regardless of whether there is a loss in the tax year or not, taxpayers should fill in the "Loss Compensation Detailed Form" to reflect the current year's recovery of losses from previous years, and combine the detailed form with the main statement and the main statement in accordance with the provisions of the Enterprise Income Tax Law. All relevant information shall be submitted to the competent tax authority.

Calculation method

Losses can be made up in the next five years, and the portion that is not made up after five years shall not be further deducted

So the loss in 1998 is The loss in 2000 will be made up in 2001-05. According to the above calculation, the loss of 1.5 million in 1998 will be reduced to 200,000 in 1999 + 30 in 2001. Ten thousand + 200,000 in 2002 + 500,000 in 2003. Total ***1.2 million is less than 1.5 million, so no income tax should be paid in 1999-03.

Because all the profits in 1999-03 have been used to make up for the loss. There was a loss in 1998, so the loss in 2000 was made up from 2004 to 2005. Therefore, after the 2 million in 2004 made up for the 1.3 million in 2000, there was still 700,000 left as the taxable amount in 2004

So The tax payable in 2004 is: 70*25%=175,000 yuan

What is the penalty for checking corporate income tax to make up for losses? Regarding this question, the editor has given the above answer, hoping it will be helpful to everyone. The tax law stipulates that if a taxpayer suffers an annual loss, it can use the income of the next tax year to make up for it; if the income of the next tax year is insufficient to make up for it, it can continue to make up the loss year by year, but the extended make-up period shall not exceed five years.