Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Measures for the Verification and Collection of Enterprise Income Tax (Trial) (Guo Shui Fa [2008] No.30) stipulates that a taxpayer shall verify and collect enterprise income tax in any of the following circumstances:

(a) in accordance with the provisions of laws and administrative regulations, there is no need to set up accounting books;

(two) in accordance with the provisions of laws and administrative regulations should be set up but not set up account books;

(3) destroying account books without authorization or refusing to provide tax payment information;

(four) although the account books are set up, the accounts are chaotic or the cost information, income vouchers and expense vouchers are incomplete, which makes it difficult to audit the accounts;

(5) Failing to file tax returns within the prescribed time limit due to tax obligations, and failing to file tax returns within the time limit ordered by the tax authorities;

(six) the tax basis of the declaration is obviously low, and there is no justifiable reason. These measures are not applicable to special industries, special types of taxpayers and taxpayers above a certain scale. The above specific taxpayers shall be stipulated separately by State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC).

Article 14 stipulates that taxpayers who implement the method of checking payable income tax shall declare and pay taxes in accordance with the following provisions:

(1) Before determining the amount of income tax payable, the taxpayer may temporarily pay112 or 1/4 of the amount of income tax payable in the previous year, or pay in advance by monthly or quarterly installments in other ways approved by the competent tax authorities.

(2) After determining the income tax payable, after deducting the income tax paid in advance in the current year, the balance will be evenly distributed in the remaining months or quarters to determine the tax payable in the following months or quarters. Taxpayers should fill in the Monthly (Quarterly) Prepaid Tax Return of Enterprise Income Tax in People's Republic of China (PRC) (Class B) on a monthly or quarterly basis, and make tax returns within the specified tax return period.

(3) After the end of the year, the taxpayer shall declare and pay taxes to the tax authorities according to the actual turnover or actual tax payable within the prescribed time limit. If the declared amount exceeds the approved business amount or tax payable, the tax shall be paid according to the declared amount; If the declared amount is lower than the approved business amount or tax payable, the tax shall be paid according to the approved business amount or tax payable.

According to the above provisions, enterprises that pay enterprise income tax by means of approved collection are generally enterprises that do not have accounts or are difficult to conduct accurate financial accounting. Therefore, enterprises that have been determined by the tax authorities to adopt the approved enterprise income tax cannot make up for the losses of previous years in the year when the approved enterprise income tax is adopted.