How to deal with the increase of urban construction tax and education fee? Please see below for specific methods.

1. Reduce the urban construction tax and education surcharge this year, and directly write off the tax and additional subjects. Accounting treatment is as follows:

Debit: tax payable

Credits: taxes and surcharges

2. Additional reduction and exemption of urban construction tax and education fees in previous years shall be included in the profit and loss adjustment items in previous years. Accounting treatment is as follows:

Debit: tax payable

Credit: adjustment of profit and loss in previous years

3. Carry forward the profit and loss of previous years at the same time. The accounting treatment method is as follows:

Debit: previous year's profit and loss adjustment

Credit: profit distribution-undistributed profit