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How to reduce income tax after the annual settlement of social security

No adjustment is needed.

The unpaid basic old-age insurance, medical insurance and unemployment insurance premiums in previous years have been paid back to employees (tax adjustment increased in that year). Article 5 of the original Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Relevant Income Tax Issues Needed to Be Clear in the Implementation of Enterprise Accounting System (Guo Shui Fa [2003] No.45) stipulates that it can be directly deducted in the current payment period. If the amount is relatively large, the competent tax authorities may require the enterprise to deduct it equally by stages within a period of not less than three years.