How to deal with the tax refund received by enterprises?

Enterprises that pay more taxes can generally apply for tax refund according to regulations. For example, when receiving the returned income tax, it can be included in the income tax expense account and the tax payable account. How to deal with relevant accounts?

How to make an account after receiving the tax refund?

Return this year:

Debit: bank deposit

Credit: income tax expense

Debit: income tax expense

Loan: profit this year

Return next year:

Debit: bank deposit

Loan: Taxes payable-Income tax payable

Borrow: taxes payable-income tax payable

Credit: adjustment of profit and loss in previous years

Debit: previous year's profit and loss adjustment

Loan: Profit Distribution-Undistributed Profit

What is the tax refund?

Tax refund refers to the tax refund paid by taxpayers according to regulations, that is, the tax refund given by the state to encourage taxpayers to engage in or expand certain economic activities. It usually includes export tax rebate, reinvestment tax rebate, re-export tax rebate, over-receipt tax rebate, cross-border shopping tax rebate and other forms.

What was the profit and loss of the previous year?

Adjusting the profit and loss of previous years is the correction of major errors in the financial statements of previous years. Such errors include calculation errors, accounting entries errors and omissions. The profit and loss adjustment of previous years should be reported in the retained earnings statement, showing the net effect after tax. For events that occurred before the reporting period, the profit and loss adjustment of previous years will change the opening balance of retained earnings.

Adjustment of previous year's profit and loss The adjustment of previous year's profit and loss by accounting enterprises this year and the correction of important previous errors found this year involve the adjustment of previous year's profit and loss. Matters that need to adjust the annual profit and loss between the balance sheet date and the financial report approval date can also be accounted by adjusting the previous annual profit and loss.

Tax accounting entries

Accounting treatment of enterprise income tax, the entries are as follows:

1. When income tax is accrued, the accounting entries are as follows:

Debit: income tax expense

Loan: tax payable-enterprise income tax payable

2. When paying income tax, the accounting entries are as follows:

Borrow: tax payable-enterprise income tax payable

Loans: bank deposits

The accounting entries for general taxpayers to pay VAT are as follows:

1. When the enterprise sells goods this month, it will issue a special VAT invoice to the buyer. The entries are as follows:

Debit: accounts receivable/cash on hand/bank deposits

Loan: income from main business

Taxes payable-VAT payable (output tax)

2. Transfer out unpaid VAT:

Borrow: Taxes payable-VAT payable-Transfer out unpaid VAT.

Loan: Taxes payable-VAT payable-VAT unpaid.

Pay taxes and fees next month. The entries are as follows:

Borrow: Taxes payable-VAT payable-VAT unpaid.

Loans: bank deposits