What Is a Tax Settlement?

Year-end settlement refers to the settlement of budget transfers (upgrades, subsidies), income and expenditures between lower and upper fiscal budgets in accordance with the budget management system and related regulations on the basis of year-end cleanup between fiscals at all levels. According to the regulations, the matters separately settled between the finances at the higher level and the finances at the lower level shall be used to calculate the total amount of subsidies and repayments for the whole year, compare them with the subsidized and remitted amounts, and combine the current accounts to calculate the total amount. The amount that should be subsidized or settled at the end of the year, fill in the "year-end financial statement of settlement", as the proof of the year-end financial settlement, for accounting processing. In a certain sense, year-end settlement is also a special type of liquidation and settlement work before the preparation of the final accounts.

Year-end settlement

Right!

Year-end settlement refers to the settlement of budget transfers (upgrades, subsidies), income and expenditures between lower and upper fiscal budgets in accordance with the budget management system and related regulations on the basis of year-end cleanup between fiscals at all levels. According to the regulations, the matters separately settled between the finances at the higher level and the finances at the lower level shall be used to calculate the total amount of subsidies and repayments for the whole year, compare them with the subsidized and remitted amounts, and combine the current accounts to calculate the total amount. The amount that should be subsidized or settled at the end of the year, fill in the "year-end financial statement of settlement", as the proof of the year-end financial settlement, for accounting processing. In a certain sense, year-end settlement is also a special type of liquidation and settlement work before the preparation of the final accounts.

Chinese name

Year-end settlement

Foreign name

END SETTLEMENT

content

1. Fixed settlement. ^[1]

In order to simplify the settlement affairs, the Ministry of Finance will set a base for the local finance for settlement matters that do not change much, and the settlement will be performed every year. By the end of 1996, 32 settlement matters had been changed from individual settlement to fixed settlement.

2. Settlement of tax refund income.

Tax return is also a form of central government's transfer payment to the local government under the "tax-sharing" fiscal system. It is to maintain local vested interests and gradually increase the proportion of central fiscal revenue in the process of China's "tax-sharing" reform. And a reform measure. According to the regulations of the State Council, the amount of tax rebate from the central government to local governments is determined on the basis of 1993. According to the actual local income in 1993 and the division of central and local income by the tax-sharing system, the central government's net income from local governments in 1993 was approved. The amount (100% consumption tax + 75% value-added tax-revenue of the central government) is fully refunded to the local government to ensure the existing financial resources of the local government, and this will be used as the base for the central government's return of local tax revenue. After 1994, the amount of tax rebates increased year by year on the basis of 1993, and the incremental rebates were given by a factor of 1: 0.3 of the growth rate of value added tax and consumption tax in the region, that is, for each 1% increase in income and tax, the central government refunded local taxes. Increase by 0.3%. If the tax revenue of this year does not reach the tax base of the previous year, the amount of tax refund will be deducted accordingly.

3. Other settlements ^[1] . ^[1]

Including the local financial inspection of the central enterprises and institutions for disciplinary funds, replenishment of revenues from the stocks and settlements; local auditing agencies auditing the central enterprises and institutions for disciplinary funds, and subsidies of the incomes from the warehouses; Incremental return settlements of 14 economic and technological development zones, and settlement projects for enterprises and institutions.

In the settlement work, the higher-level financial department shall fill in the year-end financial final account statement according to the year-end financial system settlement items as the basis for the lower-level financial settlement. The general budget accounting at all levels of finance shall be based on the amount of tax rebate income, the original system subsidy or settlement, the special grant subsidy, the special settlement subsidy or the relief amount approved in the "year-end fiscal final statement" approved by the higher-level financial department. "Accounts with superiors" and "acquisitions with subordinates" accounts handle the account transfer business to settle the budget accounts of the subordinates for the full year ^[2]