At the end of the year, there are undistributed profits in the company account, and income tax is generally paid. According to China's tax laws and regulations, enterprises should pay enterprise income tax on their operating income according to law. If there is undistributed profit in the company account, it shall be incorporated into the taxable income of the company in the current year and pay enterprise income tax according to law.
However, if the company meets certain conditions, such as small and micro enterprises or high-tech enterprises, it may enjoy certain preferential tax policies. These preferential policies may include reducing or exempting enterprise income tax and extending the tax payment period. Therefore, if the company meets the relevant conditions, it can apply to the competent tax authorities for preferential tax policies.
To sum up: the company has undistributed profits in its year-end account, and generally needs to pay income tax. However, if the company meets the relevant conditions, it may apply to the competent tax authorities for preferential tax policies.
Legal basis:
Article 5 of the Enterprise Income Tax Law of People's Republic of China (PRC) stipulates: "The total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and losses allowed to make up in previous years, is taxable income."
Article 27 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) stipulates: "The loss mentioned in Article 5 of the Enterprise Income Tax Law refers to the amount after deducting the total income of each tax year from the untaxed income, tax-free income and the amount less than zero after deducting various expenses in accordance with the provisions of the Enterprise Income Tax Law and these Regulations."