Details are as follows:

1. The final settlement report is an enterprise income tax audit report issued by the tax authorities after a comprehensive review of enterprise income tax. The income tax settlement report is the annual report submitted by an enterprise to the State Taxation Bureau or the Local Taxation Bureau every year, commonly known as "annual report" or "tax audit report".

2. According to the Provisional Regulations on Enterprise Income Tax and its detailed rules for implementation, the Income Tax Law for Enterprises with Foreign Investment and Foreign Enterprises and its detailed rules for implementation and other relevant tax laws, China's income tax is levied annually, paid in advance in months or quarters, and settled at the end of the year. The calculation formula of audit collection: corporate income tax payable in this quarter = accumulated profit of this year *25%- income tax paid in the last quarter of this year. The calculation formula of approved collection: corporate income tax payable in this quarter = sales income in this quarter * taxable income rate *25%.

3. The final settlement is tax adjustment, without accounting treatment. By adjusting and increasing taxable income and collecting enterprise income tax, it only reduces the profits available for enterprise after-tax distribution. In terms of cost, it is whether the cost carry-forward and income match and whether there are multiple carry-forwards. In terms of cost, it is whether the accrued items meet the requirements or not.

Several directions to be grasped in completion settlement;

1. Revenue: mainly to check whether all the entered accounts are accounted for, especially whether current accounts still exist and are not accounted for as revenue.

2. Cost: mainly refers to whether the cost carry-forward matches the income and whether there are many carry-forwards.

3. Expenses: mainly whether the accrued items meet the requirements or not (especially the items related to wages); Whether the charging channels are correct (especially those related to welfare funds); Whether the actual deduction items are calculated correctly (especially entertainment expenses and advertising expenses);

4. Tax payment: Whether other small taxes, such as property tax, vehicle and vessel use tax, stamp duty and land use tax, have been paid according to regulations.

To sum up, final settlement refers to the collection, final settlement and payment of income tax and other taxes applicable to prepayment method after the end of the year. In order to ensure the timely and balanced storage of taxes, in actual work, taxes are generally paid in advance on a monthly and quarterly basis, and settled at the end of the year, with more refunds and less supplements.

Legal basis:

Article 54 of the Enterprise Income Tax Law of People's Republic of China (PRC)

Enterprise income tax shall be paid in advance monthly or quarterly.

An enterprise shall, within 15 days after the end of the month or quarter, submit a tax return for prepaying enterprise income tax to the tax authorities and pay taxes in advance.

The enterprise shall, within five months after the end of the year, submit the annual enterprise income tax return to the tax authorities for final settlement and settlement of the tax refund.

When an enterprise submits an enterprise income tax return, it shall attach financial and accounting reports and other relevant materials in accordance with the regulations.