In the process of enterprise production and operation, the final settlement should be completed every year in accordance with the relevant tax laws. In the process of enterprise income tax settlement, if the payable income tax is less than the prepaid tax, you can apply for tax refund.

Accounting entry of tax refund for income tax settlement

The annual income tax payable is less than the prepaid tax, and its accounting entries are as follows:

Borrow: taxes payable-income tax payable

Credit: adjustment of profit and loss in previous years

Redistribution of profits:

Debit: adjustment of profit and loss in previous years

Loan: profit distribution-undistributed profit

Refund of overpaid tax:

Debit: bank deposit

Loan: taxes payable-income tax payable

What is the final settlement of enterprise income tax?

Final settlement refers to the taxpayer's act of calculating the taxable income and income tax payable for the whole year within the specified period after the end of the tax year in accordance with the relevant tax laws and regulations, determining the amount to be supplemented or refunded for the year based on the amount of income tax paid in advance monthly or quarterly, filling out the annual enterprise income tax return, handling the annual enterprise income tax return with the competent tax authorities, providing relevant information required by the tax authorities, and settling the annual enterprise income tax.

Time for final settlement of enterprise income tax

According to the Enterprise Income Tax Law of the People's Republic of China, an enterprise shall, within five months from the end of the year, submit the annual enterprise income tax return to the tax authorities, make final settlement and settle the tax refund payable.

Personal income tax settlement time

According to the Individual Income Tax Law of the People's Republic of China:

Article 11: Individual income tax shall be calculated on an annual basis when individual residents obtain comprehensive income; If there is a withholding agent, the withholding agent shall withhold the advance tax on a monthly basis or every time; If it is necessary to settle accounts, it shall be settled within March 1st to June 30th of the following year. The withholding and prepayment measures shall be formulated by the competent tax authorities of the State Council.

Article 12: Taxpayers shall calculate individual income tax on an annual basis after obtaining business income. Taxpayers shall submit tax returns to the tax authorities within 15 days after the end of each month or quarter, and pay taxes in advance. Settle the income before March 31st of the following year.