under normal circumstances, the tax authorities will select some industries and enterprises to conduct tax inspection, and enterprises will sometimes conduct self-inspection. After tax inspection and self-examination, enterprises should make timely accounting adjustments in addition to paying enterprise income tax in accordance with regulations, so as to avoid repeated tax payment in future years. Then, can business tax and surcharges be deducted when paying corporate income tax? This is a hot issue that many enterprises are concerned about. The following is an example to analyze this problem. Case: At present, our company is subject to tax-related audit. The contract amount of a project is 1 million yuan, the total budgeted cost is 8 million yuan, the cumulative confirmed income is 8 million yuan, the cumulative confirmed cost is 6.5 million yuan, the book carry-forward cost is 1.5 million yuan, and the project has been completed on December 31, 213. The tax officials think that the confirmed income is 2 million yuan less, the confirmed cost is 1.5 million yuan less, and the confirmed profit is 5, yuan less. Pay back the tax 5? 25% = 125, yuan, and the project also incurred a cost of 1, yuan in February 214: (1) The actual cost of 1, yuan in February 214 did not occur in 213. Is it deducted when calculating the under-recognized profit? (2) less confirmed income of 2 million yuan? 3.36% = 67,2 yuan. Should the business tax and surcharges be deducted from the less recognized profits as costs? That is, should the overdue tax be calculated according to the less confirmed profit of 2 million yuan-1.5 million yuan-1-6.72 = 332,8 yuan? 1. Paragraph 1 of Article 53 of the Enterprise Income Tax Law stipulates that enterprise income tax shall be calculated according to the tax year. The tax year starts from January 1st to December 31st in Gregorian calendar. Article 9 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the calculation of taxable income of enterprises is based on the accrual basis and belongs to the income and expenses of the current period, regardless of whether the money is received or not. Income and expenses that do not belong to the current period, even if the money has been received and paid in the current period, are not regarded as income and expenses of the current period. Except as otherwise provided by this Ordinance and the competent departments of finance and taxation of the State Council. Article 6 of State Taxation Administration of The People's Republic of China's Announcement on Several Issues Concerning Enterprise Income Tax (State Taxation Administration of The People's Republic of China Announcement No.34, 211) stipulates that the relevant costs and expenses actually incurred by an enterprise in the current year may be accounted for temporarily according to the book amount when the enterprise prepays the quarterly income tax due to various reasons; However, in the final settlement, valid vouchers of the cost and expenses shall be supplemented. According to the above regulations, the cost incurred by your company in February 214 does not belong to the actual cost incurred in 213, and cannot be deducted before tax in 213, but should be deducted before tax in 214 according to regulations. 2. Article 31 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the taxes mentioned in Article 8 of the Enterprise Income Tax Law refer to all taxes and surcharges incurred by an enterprise except enterprise income tax and value-added tax that can be deducted. Article 2 of State Taxation Administration of The People's Republic of China's Notice on Several Issues Concerning the Confirmation of Enterprise Income Tax (Guo Shui Han [28] No.875) stipulates that if the result of providing labor services can be reliably estimated at the end of each tax period, the income from providing labor services should be confirmed by the completion progress (completion percentage) method. (1) The result of providing services can be reliably estimated, which means that the following conditions are met at the same time: 1. The amount of income can be reliably measured; 2. The completion schedule of the transaction can be reliably determined; 3. The costs that have occurred and will occur in the transaction can be reliably accounted for. (2) The following methods can be used to determine the completion schedule of labor services provided by enterprises: 1. Measurement of completed work; 2. The proportion of labor services provided to the total amount of labor services; 3. The proportion of the incurred cost to the total cost. Article 6 of State Taxation Administration of The People's Republic of China's Announcement on Several Tax Treatment Issues of Taxable Income of Enterprise Income Tax (State Taxation Administration of The People's Republic of China Announcement No.15, 212) stipulates that according to the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Collection, after the enterprise makes a special declaration and explanation, it is allowed to make up for the expenses actually incurred in the previous year that should be deducted before the enterprise income tax according to tax regulations, but it is allowed to make up for the deduction until the year when the project occurs. The enterprise income tax overpaid for the above reasons can be deducted from the enterprise income tax payable in the retroactive confirmation year. If it is insufficient to be deducted, it can be deferred for deduction or applied for tax refund in future years. If a loss-making enterprise makes up for the expenses that were not deducted before the enterprise income tax in the previous year, or a profit-making enterprise makes a loss after making up for the expenses, it should first adjust the loss of the year to which the expenses belong, and then calculate the overpaid enterprise income tax in the following years according to the principle of making up for the losses, and deal with it according to the provisions of the preceding paragraph. Article 12 of the Provisional Regulations on Business Tax stipulates that the time when the business tax payment obligation occurs is the day when the taxpayer provides taxable services, transfers intangible assets or sells real estate, and receives the operating income or obtains the evidence for claiming the operating income. Unless otherwise provided by the competent departments of finance and taxation of the State Council, such provisions shall prevail. The business tax withholding obligation occurs on the day when the taxpayer's business tax obligation occurs. Article 25 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax stipulates that if a taxpayer transfers the land use right or sells real estate in advance, its tax obligation will occur on the day when it receives the advance payment. Where a taxpayer provides services in the construction industry or leasing industry in the form of advance payment, its tax obligation occurs on the day when it receives the advance payment. According to the above regulations, the revenue recognized by your company in 213 according to the above regulations cannot be postponed to 214. Your company shall confirm and pay the business tax and surcharges according to the time when the business tax obligation occurs, and deduct them before tax in the actual year.