According to the Provisional Regulations on Enterprise Income Tax and its implementing rules, the Income Tax Law for Enterprises with Foreign Investment and Foreign Enterprises and its implementing rules and other relevant tax laws, China adopts the method of annual calculation, monthly or quarterly advance payment and year-end final settlement. The so-called "final settlement" of income tax refers to the adjustment of financial accounting treatment inconsistent with the provisions of tax laws and regulations on the basis of accounting data, the adjustment of accounting income into taxable income, the calculation of annual tax payable by applying the applicable tax rate, the determination of the difference after comparing with the current prepaid tax, and the submission of final accounting statement, annual tax return of enterprise income tax and other requirements to the tax authorities within the reporting period stipulated by the tax law. The final settlement of enterprise income tax should be based on enterprise accounting and tax laws and regulations.

2. The ultimate goal

According to the provisions of the current income tax law, all enterprises with sound financial accounting system, clear accounts, complete cost data, income vouchers and expense vouchers, standardized accounting and correct calculation of taxable income, which are determined by the tax authorities to be applicable to audit collection, shall conduct income tax settlement at the end of the year. Its applicable objects specifically include: (1) domestic-funded enterprises or organizations that carry out independent economic accounting and pay enterprise income tax according to law, including state-owned enterprises, collective enterprises, private enterprises, joint ventures, joint-stock enterprises and organizations with production, operating income and other income. (2) Enterprises with foreign investment and foreign enterprises. Including Chinese-foreign equity joint ventures, Chinese-foreign cooperative ventures and foreign-funded enterprises established in China, as well as foreign companies, enterprises and other economic organizations that have set up institutions and places in China to engage in production and operation, but have income from China. (3) Individual income tax for sole proprietorship enterprises and partnership enterprises. Including sole proprietorship enterprises, partnership enterprises, sole proprietorship and partnership private enterprises, partnership law firms registered and established according to law, and other institutions or organizations with unlimited liability and unlimited joint liability for sole proprietorship and partnership established with the approval of relevant government departments in accordance with laws and regulations. Taxpayers shall file annual enterprise income tax returns according to the relevant tax laws, regardless of the profits, losses or tax reduction or exemption periods in the tax year.

Edit this program overview.

Procedures for the final settlement and payment of enterprise income tax I. Final settlement and payment of domestic-funded enterprise income tax II. The income tax of foreign-invested enterprises and foreign enterprises shall be settled and settled. Settlement and settlement of income tax of sole proprietorship enterprises and partnership enterprises

Edit this paragraph 1. Summary of income tax settlement of domestic enterprises.

According to the Provisional Regulations on Enterprise Income Tax and its detailed rules for implementation, the Law of People's Republic of China (PRC) on Tax Collection and Management, and the Administrative Measures for the Final Settlement and Payment of Enterprise Income Tax in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Guo [1998- 10-20]No. 182) and other laws and regulations,

1. Time limit for settlement and payment

Income tax paid by domestic-funded enterprises shall be calculated on an annual basis and paid in advance in monthly or quarterly installments. Taxpayers shall submit accounting statements and advance income tax returns to the local competent tax authorities within 15 days after the end of the month or quarter; Within forty-five days after the end of the year, submit final accounting statements and income tax returns to the local competent tax authorities, and settle the unpaid taxes within four months after the end of the year. If the prepaid tax exceeds the taxable amount, the competent tax authorities shall promptly refund the tax or deduct the taxable amount for the next year. It should be noted that: (1) taxpayers who pay income tax in advance on a monthly or quarterly basis should declare the tax in the last prepayment period of the tax year within 15 days after the end of the year, and may not postpone the declaration of prepayment until the final settlement. (2) If the taxpayer has paid the tax in advance according to the regulations and cannot file the annual enterprise income tax return within the prescribed time limit due to special reasons, it shall file a written application for extension within the reporting time limit, and handle it within the approved time limit after being approved by the competent tax authorities. (3) If a taxpayer is unable to file tax returns on schedule due to force majeure, it may postpone the filing; However, it shall report to the competent tax authorities immediately after the force majeure situation is eliminated. The competent tax authorities shall ascertain the facts and give approval. (4) If a taxpayer goes bankrupt or terminates its production and business activities in the middle of the tax year, it shall file an enterprise income tax declaration with the competent tax authorities within 30 days from the date of cessation of production and business activities, and settle the enterprise income tax within 60 days, and calculate the enterprise income tax during the liquidation period according to law and settle the payable tax. (5) In case of merger or division of taxpayers in the middle of the tax year, if the taxpayer's identity changes after the merger or division according to the provisions of tax laws and regulations, enterprise income tax declaration shall be made before the change of tax registration, and the tax shall be settled in a timely manner; If the taxpayer's identity remains unchanged, the tax year can be calculated continuously.

2. Settlement and payment procedures

(1) Fill in the tax return and attach relevant materials. Taxpayers shall make their own tax adjustments within 45 days after the end of the year according to the financial statements, and fill in the annual tax return and its schedules (including tax adjustment items, tax reduction and exemption items, joint venture profit sharing, dividend income tax table, etc.). ), and to the competent tax authorities for annual tax returns. In addition to the above-mentioned income tax return and its schedule, taxpayers should also attach the following related materials: a. financial and accounting annual final statements and their explanatory materials. Including balance sheet, income statement, cash flow statement and other relevant financial information; Contracts, agreements and vouchers related to tax payment; C, business activities tax management certificate and remote tax payment certificate; D. Relevant certification documents issued by domestic or overseas notarization institutions; 5. Other relevant documents and materials required by the competent tax authorities. (2) The tax authorities accept the application and review the submitted materials. A. After receiving the tax return or tax withholding report submitted by the taxpayer or withholding agent, the competent tax authorities shall review the basic information such as its name, telephone number, address and bank account number, and ask the taxpayer to provide the basis for the change. If the change falls within the management scope of other departments, the taxpayer shall be urged to go through the formalities of change in the relevant departments and hand over a copy of the basis for the change to the competent tax authorities. B, the competent tax authorities to review the contents of the declaration, mainly to review whether the tax items, tax rates and tax basis are complete and correct, whether the tax calculation is accurate, whether the attached information is complete, whether it conforms to the logical relationship, whether to make tax adjustments, etc. If there are calculation errors or omissions in the taxpayer's declaration during the audit, the taxpayer will be notified in time to make adjustments, supplements, amendments or re-declaration within a time limit. Taxpayers should make corresponding amendments according to the notice of the tax authorities. C. After examination and approval by the competent tax authorities, determine the enterprise income tax payable in the current year and the enterprise income tax to be paid back, or refund or deduct the overpaid enterprise income tax in the next year. (III) Proactively Correcting Errors in Declarations If a taxpayer finds errors in his annual tax returns within 45 days after the end of the year, according to the Administrative Measures for the Final Settlement and Payment of Enterprise Income Tax and other relevant laws and regulations, after handling the annual income tax returns, the taxpayer can fill in the Enterprise Income Tax Self-inspection Declaration Form and report to the tax authorities to voluntarily correct the errors, and the tax authorities will adjust the annual income tax payable, compensation and compensation accordingly. (4) Taxpayers who settle accounts shall pay taxes within 4 months after the end of the year according to the annual income tax payable, tax refund payable and tax refund payable determined by the competent tax authorities. If the tax paid in advance by the taxpayer is less than the annual tax payable, the overdue tax shall be turned over to the state treasury before the end of April; If the prepaid tax exceeds the annual tax payable, the mortgage or tax refund formalities shall be handled. (V) Handling an application for deferred tax payment According to the relevant provisions of the Law of People's Republic of China (PRC) on the Administration of Tax Collection and its detailed rules for implementation, taxpayers have the following special difficulties: a. Natural disasters such as water, fire, wind, thunder, tsunami and earthquake occur, or accidents such as theft and robbery of taxable cash, checks and other property occur, resulting in heavy losses to taxpayers. Taxpayers should provide disaster reports or accident certificates issued by public security organs; B, due to the direct influence of the national adjustment of economic policies, or short-term payment default, the current monetary funds are not enough to pay taxes after deducting the wages and social insurance premiums payable to employees. Taxpayers should provide the basis for relevant policy adjustments or provide proof of payment default and proof that the defaulting party cannot pay on time. Therefore, taxpayers who fail to pay taxes on time should apply to the competent tax authorities before the expiration of the tax payment period (generally, they should apply to the local competent tax authorities before the expiration of the tax payment period 15 days, please refer to the provisions of the local tax authorities for details), and submit the following materials: application report for deferred tax payment, current monetary fund balance, statements of all bank deposit accounts, balance sheets, wages payable to employees and social insurance premiums, and other expenditure budgets required by the tax authorities. With the approval of the State Taxation Bureau and Local Taxation Bureau of a province, autonomous region or municipality directly under the Central Government, or the State Taxation Bureau and Local Taxation Bureau of a city under separate state planning, the tax payment may be postponed for a maximum of three months. The tax authorities shall make a decision of approval or disapproval within 20 days from the date of receiving the application report for deferred tax payment; If it is not approved, the taxpayer will be charged a late fee from the date of expiration of the tax payment period.

Edit this paragraph II. Foreign-invested enterprises and foreign enterprises' income tax settlement.

The annual income tax settlement and payment of foreign-invested enterprises and foreign enterprises has certain particularity in the following aspects, and other contents can be applied with reference to the Provisions on Income Tax Settlement and Payment of Domestic Enterprises.

1. Time limit for settlement and payment

The income tax paid by foreign-capital enterprises shall be calculated on an annual basis and paid in advance quarterly. Taxpayers shall submit accounting statements and advance income tax returns to the local competent tax authorities within 15 days after the end of this quarter; Within four months after the end of the year, submit final accounting statements and income tax returns to the local competent tax authorities, and settle the unpaid taxes within five months after the end of the year. If the prepaid tax exceeds the taxable amount, the competent tax authorities shall promptly refund the tax or deduct the taxable amount for the next year. Taxpayers who are unable to file income tax returns within the above-mentioned prescribed time limit due to special reasons shall submit a written application within the reporting time limit, which may be appropriately extended after approval by the competent tax authorities, or who are unable to prepare a complete income tax return within the prescribed time limit due to special reasons shall submit a written application within the prescribed time limit. After approval by the competent tax authorities, income tax returns and schedules may be submitted in advance according to regulations, and other relevant statements and materials may be appropriately extended. However, with the approval of the competent tax authorities, the longest extension of filing shall not exceed one month.

2, the tax return should be accompanied by information.

When handling the annual income tax return, taxpayers shall truthfully fill in and submit the following statements, materials and documents: (1) annual income tax return of enterprises and its schedules; (2) Annual final accounts, including: balance sheet, income statement, cash flow statement, inventory statement, fixed assets and accumulated depreciation statement, intangible assets and other assets statement, foreign currency capital statement, value-added tax payable statement, profit distribution statement, product sales cost statement, production cost of main products, sales income and sales cost statement, manufacturing cost statement, sales expenses, management expenses, financial expenses and non-operating income and expenditure statement, and accrued expenses statement. If the format of final accounting statements used by taxpayers is different from that of the above statements, the accounting statements and schedules of this industry shall be submitted. (3) Audit report of certified public accountants in China; (4) Other materials required by the competent tax authorities, including: a. Copies of relevant approval documents for enjoying tax benefits; B if the enterprise has the following cost items, it is required to submit copies of relevant approval documents: environmental account preparation, bad debt loss, current industry accounting method change and other items.

Edit the third paragraph. Income tax of sole proprietorship enterprises and partnership enterprises shall be settled and settled.

The annual income tax settlement and payment of sole proprietorship enterprises and partnership enterprises has certain particularity in the following aspects, and other contents can be applied with reference to the Provisions on Income Tax Settlement and Payment of Domestic Enterprises.

1. Time limit for settlement and payment

Individual income tax payable by investors shall be calculated on an annual basis and paid in advance in monthly or quarterly installments. Investors should pay in advance within 7 days after the end of each month or quarter, and within 30 days after the end of each year, investors should submit the individual income tax return form of sole proprietorship enterprises and partnership enterprises, together with the annual final accounting statement and the prepaid personal income tax payment certificate to the competent tax authorities. Settle the payment within 3 months after the end of the year, and refund more and make up less.

2. Place of settlement

Investors should report and pay individual income tax to the local competent tax authorities where the enterprise actually operates and manages. The income obtained by investors from the production and operation of the partnership enterprise shall be declared and paid by the partnership enterprise to the local competent tax authorities where the enterprise actually operates and manages, and the individual income tax return shall be copied to the investors.

3. Final settlement when investors set up more than two enterprises.

Where an investor establishes two or more enterprises, it shall pay taxes in advance to the competent tax authorities where the enterprises actually operate and manage. After the end of the year, the settlement shall be handled according to different situations: (1) All enterprises established by investors are sole proprietorship enterprises, and the annual tax declaration shall be made to the local competent tax authorities where each enterprise actually operates and manages, and the applicable tax rate shall be determined according to the total operating income of each enterprise, and the tax payable for settlement shall be calculated based on the operating income of this enterprise; (2) If there is a partnership among the enterprises established by the investor, the investor shall report and pay taxes to the competent tax authorities of his habitual residence for final settlement. However, if its habitual residence is inconsistent with the location of its management enterprise, it shall choose the location where it participates in the establishment of the partnership as the location where it handles the annual settlement and payment, and it shall not be changed within five years. If it needs to be changed after 5 years, it must be approved by the original competent tax authorities. (3) Where an investor sets up two or more enterprises, it shall indicate the annual taxable income obtained from other enterprises when handling the annual tax return with the competent tax authorities in the place where the enterprises actually operate and manage; If a partnership enterprise is included, it shall submit a summary declaration form of individual income tax of partnership enterprise investors, which summarizes the income of all enterprises, and attach the annual final accounts of all enterprises and the personal income tax payment certificate paid in the current year.