The annual corporate income tax final settlement is the busiest time for financial personnel: they must not only calculate the deduction ratios of various expenses, but also fill out dozens of declaration forms correctly. If you are not careful, you may make mistakes in increase or decrease, and even trigger tax risks. Today we will break down the core points of final settlement, from the expense deduction ratio to the practical operation of filing reports, and then to risk avoidance, to help you understand this matter clearly.
Remember it first! Deduction ratios for 12 types of expenses, if you calculate them incorrectly, you will lose money
One of the core of corporate income tax final settlement is to figure out the pre-tax deduction ratio of various expenses. Most of the overspending needs to be increased by tax, which directly affects the corporate tax burden. Be sure to remember the deduction standards for these 12 common types of expenses:
1. Reasonable wages and salary expenses: 100% deducted in full, but it should be noted that they must be actually paid before settlement and settlement. For example, a salary of 1.2 million is accrued in 2023, but only 1 million is paid before settlement, and the 200,000 must be adjusted and increased.
2. Employee welfare fees: The deduction limit is 14% of total wages and salaries, and the excess cannot be carried forward. For example, in 2024, the welfare fee is 350,000 yuan, and the total salary is 2.2 million yuan. Calculated at 14%, only 308,000 yuan can be deducted, and the remaining 42,000 yuan will be increased.
3. Union funds: The deduction rate is 2% of total wages and salaries, and the overspending cannot be carried forward either. If the union fund is 50,000 yuan and the total salary is 2.2 million yuan in 2024, 44,000 yuan can be deducted and 6,000 yuan needs to be increased.
4. Employee education funds: The deduction rate is 8% of total wages and salaries, and the excess can be carried forward and deducted in subsequent years. There are also special regulations that employee training fees for software and integrated circuit companies, and special training fees for nuclear power and aviation companies, can be deducted based on the actual conditions and are not subject to the 8% limit.
5. Business entertainment expenses: There are double standards for deduction. One is 60% of the actual amount incurred, and the other is no more than 0.5% of the current year’s operating income, whichever is lower. Even during the preparation period, only 60% of the actual amount can be deducted. As long as business entertainment expenses are incurred, there will definitely be an increase. For example, in 2024, business entertainment expenses are 400,000, operating income is 40 million, 60% is calculated as 240,000, and 0.5% of operating income is 200,000. In the end, only 200,000 will be deducted, and 200,000 will be increased.
6. Advertising expenses and business promotion expenses: Generally, the deduction rate for enterprises is 15% of operating income, and the excess can be carried forward to subsequent years; for cosmetics, medicine, and beverage manufacturing enterprises, the proportion is increased to 30%, and tobacco enterprises cannot deduct it at all. The publicity expenses incurred during the preparation period can be deducted according to the actual situation. In addition, if you give a gift directly, it will be considered as entertainment expenses, but if you print the company logo and then send it, it can be classified as business promotion expenses.
7. Charitable donation expenditure: the deduction rate is 12% of the total annual profit, and the excess expenditure can be carried forward for three years for deduction.
8. Handling fees and commission expenses: The deduction rate for general enterprises is 5%, and special industries such as insurance companies can deduct 18%. The specific implementation is based on industry policies.
9. Corporate liability insurance expenses: 100% fully deductible, no proportional limit.
10. Supplementary pension insurance premiums and supplementary medical insurance premiums: The deduction rate is 5% of total wages and salaries, and must be purchased for all employees. If it is purchased for only some employees, this expenditure cannot be deducted.
11. Super deduction of research and development expenses: Ordinary enterprises can have a super deduction of 5%. For qualified enterprises such as small and medium-sized enterprises such as science and technology, the super deduction ratio can reach 100%. The specific implementation shall be in accordance with the latest policies.
12. Super deduction from the wages of disabled persons: 100% super deduction, which is a special tax benefit for disability insurance.
Don’t panic when filling out the form! 37 tables actually have rules
Many financial personnel get a headache when they see the 37 declaration forms for final settlement. In fact, this form system is very clear. The core is a main form + seven items, and all forms revolve around the main form.
The first thing you need to fill out is the A000000 Corporate Income Tax Annual Tax Return Basic Information Form. This is a required form. You need to fill in the company's basic operating conditions, tax-related matters, shareholder dividends and other information to provide guidance for subsequent declarations.
Then there are various detailed forms, such as A101010 General Enterprise Income Details and A102010 General Enterprise Expenditure Details, which respectively reflect the income and cost expenditures of the enterprise; financial enterprises must fill in the corresponding financial enterprise income and expenditure details.
The data in these detailed forms will eventually be summarized into the A100000 People's Republic of China Corporate Income Tax Annual Tax Return (Category A), which is the core master form for calculating the corporate tax payable. As long as you fill in the order of "basic information table → detail table → main table", you can clarify the logic and no longer need to be confused about the form.
Accounting processing after settlement: how to do tax refund and tax repayment
After the final settlement is completed, there will be overpayment or backpayment of taxes. The corresponding accounting processing should be carried out according to the situation:
Situation 1: The amount of prepaid tax is too much, apply for tax refund or tax credit
If the annual tax payable is less than the prepaid tax, you can apply for a tax refund for the overpaid tax, and the accounting processing must be done through the "Profit and Loss Adjustment of Previous Years" account:
1. When confirming overpayment of taxes, debit: tax payable – corporate income tax payable, credit: adjustment of profit and loss in previous years;
2. When carrying forward profits and losses, debit: previous year's profit and loss adjustment, credit: profit distribution – undistributed profits;
3. If the enterprise has a surplus reserve, it needs to be adjusted proportionally, debit: profit distribution – undistributed profits, credit: surplus reserve – statutory surplus reserve.
If you choose not to refund the tax and use the overpaid tax to offset the prepaid tax for the next year, you can debit: income tax expense, debit: tax payable – corporate income tax payable.
Situation 2: Corporate income tax needs to be paid back
To calculate the tax payable after the annual settlement, the steps are as follows:
1. When confirming the amount of tax repayment, debit: previous year's profit and loss adjustment, credit: tax payable – corporate income tax payable;
2. When the tax is actually paid, debit: tax payable – corporate income tax payable, credit: bank deposit;
3. When carrying forward profits and losses, debit: profit distribution-undistributed profits, credit: adjustment of previous years' profits and losses.
Final reminder: Tax risks should be avoided in advance
The tax department now has a corporate income tax "Tax Policy Risk Alert Service" system. The declaration data will first be scanned by the risk control module. If there are problems such as data anomalies and inconsistent deduction ratios, the system will push risk alerts.
When filling in the report, financial personnel must first self-check whether the deductions for various expenses are in compliance with the proportion, whether the data in the declaration form is consistent with the financial statements, and whether the preferential policies meet the conditions for enjoyment. Once you receive a risk warning, you can promptly modify the declaration data to avoid subsequent tax inspections.
To summarize: the final settlement of corporate income tax may seem complicated, but the core is to "calculate accurate deductions, fill in correct statements, and make adjustments." Keep the expense deduction ratio in mind, fill in the report according to the process, and pay attention to the tax risks, and this work can be completed smoothly.
