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All you want to know about annual report and final settlement!

· Finance,Tax
Every year, the annual report and final settlement must be completed within the prescribed time. Even if affected by the epidemic, these two tasks should still be completed on time.   Recently, many customers have consulted us about the annual announcement and settlement. It seems that many enterprises owners are still unclear about how to deal with them so we decide to generalize the answers for your reference! 

1、About the enterprise annual report

Q: What is business annual report of the enterprise ? 

A: The annual report of industry and Commerce of enterprises refers to the annual business report submitted by enterprises to the industry and commerce authorities through the national credit information publicity system within the specified time, and publicized to the society for the inquiry of units and individuals. All registered enterprises shall participate in the annual report. If it is an enterprise established in that year, it will participate in the annual report from the next year.

Q: when is the annual report this year? 

A: January 1 to June 30, 2020   

Q: What are the publicity contents of the business annual report ?

A: It mainly includes the following 7 items

1. Information such as business address, postal code, contact number, e-mail address, etc;

2. Information on the existence status of the enterprise such as opening, closing and liquidation;

3. Information about the investment, establishment and purchase of equity;

4. If the enterprise is a limited liability company or a joint stock limited company, the amount, time, method and proportion of equity subscribed and paid in by its shareholders or promoters;

5. Information of equity change such as equity transfer of shareholders of limited liability company;

6. Information such as the name and website of the enterprise website and the online shop engaged in network operation;

7. Information about the number of employees, total assets, total liabilities, external guarantee, total owner's equity, total operating income, main business income, total profits, net profits and total taxes.

Note: the information specified in Items 1 to 6 shall be publicized to the society, and whether the information specified in Item 7 shall be publicized to the society shall be determined by the enterprise.

Q: What are the consequences of overdue annual reports ? 

A: Because the annual report of industry and commerce involves too much information of enterprises, the consequences will be quite serious if it is not reported within the time limit. 1. If the enterprise fails to make the annual report of industry and Commerce on time, it will be listed in the list of business exceptions by the industry and Commerce Department; if the enterprise has not been removed after three years, it will be listed in the list of serious illegal and dishonest enterprises; 2. After being listed in the list of serious violations of law and dishonesty, the enterprise will not be able to loan, invest, enter or leave the country, participate in bidding, government procurement, etc., seriously affecting personal development; 3. After being listed in the list of serious violations of law and dishonesty, the enterprise legal person will be restricted in the process of registering a new company, operating and working qualifications; 4. After being listed in the list of serious violations and dishonesty, the credit will be questioned when the enterprise cooperates with others, which will seriously affect the long-term development of the company.

Q: What are the consequences of misreporting business annual report ? 

A: In addition to being punished for failing to report within the time limit, false report also involves risks. In case of concealing the real situation and practicing fraud in the public information, the industrial and commercial authorities will punish according to law, and inform the relevant departments such as public security, finance, customs, tax and other information of the legal representative and person in charge of the enterprise. In addition, a fine of not less than 10000 yuan but not more than 30000 yuan will be imposed on the illegal enterprises, and a fine of not less than 500 yuan but not more than 5000 yuan will be imposed on the illegal individual businesses.

2、 About remittance and settlement

 

Q: What is final settlement ?  

A: The so-called final settlement means that the enterprise checks the tax situation of the previous year according to the national tax regulations, and confirms whether there is any over deduction or less deduction according to the pre paid enterprise income tax, adjusts or reduces the tax accordingly, fills in the annual tax return of enterprise income tax, provides relevant information, and settles the enterprise income tax of the whole year.

 

Q: Settlement time  

A: Deadline: before May 31, 2020             

 

Q: What are the consequences of overdue settlement?  

A: 1. The legal representative is unable to buy the house with loan;

2. The legal representative cannot handle immigration;

3. The legal representative is unable to receive endowment insurance;

4. The company will be fined 20 to 10000 yuan by the tax bureau every year;

5. In case of tax arrears, the legal representative of the enterprise will be prevented from leaving the country; unable to take the plane or high-speed rail;

6. If the tax is not declared for a long time, the tax bureau will conduct on-site inspection;

7. If the tax is not declared for a long time, the invoice will be locked;

8. It will be registered into the list of business exceptions on the industrial and commercial credit network, and all foreign application businesses will be restricted, such as bank account opening, entering the mall, etc.

 

Advise from Fintegrity: It has been several months since 2020, we strongly advise business owners who have not yet finished these two tasks to hurry up.

2、 About remittance and settlement

Q: What is final settlement ?  

A: The so-called final settlement means that the enterprise checks the tax situation of the previous year according to the national tax regulations, and confirms whether there is any over deduction or less deduction according to the pre paid enterprise income tax, adjusts or reduces the tax accordingly, fills in the annual tax return of enterprise income tax, provides relevant information, and settles the enterprise income tax of the whole year.

Q: Settlement time  

A: Deadline: before May 31, 2020             

Q: What are the consequences of overdue settlement?  

A: 1. The legal representative is unable to buy the house with loan;

2. The legal representative cannot handle immigration;

3. The legal representative is unable to receive endowment insurance;

4. The company will be fined 20 to 10000 yuan by the tax bureau every year;

5. In case of tax arrears, the legal representative of the enterprise will be prevented from leaving the country; unable to take the plane or high-speed rail;

6. If the tax is not declared for a long time, the tax bureau will conduct on-site inspection;

7. If the tax is not declared for a long time, the invoice will be locked;

8. It will be registered into the list of business exceptions on the industrial and commercial credit network, and all foreign application businesses will be restricted, such as bank account opening, entering the mall, etc.

Advise from Fintegrity: It has been several months since 2020, we strongly asvise business owners who have not yet finished these two tasks to hurry up.

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