1. There are currently two methods of corporate income tax collection: audit collection and taxable income rate collection.

Accounting and collection: Enterprises that comply with financial accounting standards will find the applicable tax rate based on profits after revenue minus costs and expenses, and calculate and pay corporate income tax.

The taxable income rate levy is applicable to enterprises that can correctly calculate income but cannot correctly calculate costs and expenses.

2. The key to audit levy and assessed taxable income rate levy is to see which one is higher, your profit rate or the assessed taxable income rate. If the profit rate is high, then the assessed taxable income rate is levied. You will pay less tax, otherwise you will pay more tax. For example: your operating income is 1 million yuan, costs and expenses are 500,000 yuan, circulation tax is 100,000 yuan, and the profit rate is 40%. If the taxable income rate is 25%:

Enterprises that audit and collect taxes Income tax = (income - cost expenses - circulation tax) * tax rate = (100-40-10) * 33% = 132,000 yuan;

Corporate income tax levied on the approved taxable income rate = income * approved Taxable income rate * tax rate = 100*25%*33% = 82,500 yuan;

The difference between the two is 49,500 yuan, mainly because your profit rate is 40% higher than the approved taxable income rate 25% of the reasons.

3. If your financial accounting system is not complete and you cannot accurately calculate costs and expenses, the tax department will definitely implement tax collection by determining the taxable income rate. If your profit rate is lower than the approved taxable income rate, it is recommended that you do a good job in financial accounting according to regulations and strive for audit collection (you can pay less tax). Otherwise, it will be beneficial to you to implement tax collection based on the approved taxable income rate.