Characteristics Of Tax Accounting Adjustment Accounting

The adjustment accounting of tax accounting refers to the process that tax accounting will adjust the total profit, accounting income and payable tax according to accounting standards and accounting systems to the taxable income, taxable income and tax payable according to the accounting of tax law.

The tax accounting adjustment accounting studied in this paper has certain foresight and is the adjustment accounting after tax accounting is completely separated from financial accounting.

The current tax adjustment actually reflects the result of adjustment and does not reflect the adjustment process. Even if there is an adjustment process, it is only a very simple calculation table.

The tax accounting adjustment accounting system has a complete account book system. After making adjustment entries, it is necessary to record the tax accounting vouchers and accounts books.

In this way, the adjustment results are more verifiable, which can improve the correctness of tax treatment results and facilitate tax planning.

With regard to the method of adjusting accounting of tax accounting, the author thinks that tax accounting and financial accounting should make a set of accounts. Otherwise, tax accounting will not become an independent tax accounting with financial accounting, and tax accounting will not be completely separated from financial accounting.

In the two accounts of financial accounting and tax accounting, financial accounting should be the main accounting items, and tax accounting books should be adjusted on the basis of financial accounting books.

Compared with financial accounting, tax accounting adjustment accounting mainly has the following characteristics:

I. difference

The difference between tax accounting adjustment and accounting refers to the adjustment accounting of tax accounting, which only adjusts the difference between tax accounting and financial accounting. There is no adjustment to the tax department which has no difference between tax accounting and financial accounting.

For those parts that need not be adjusted, tax accounting can be directly reflected in the tax accounting statements (tax returns) by directly using financial accounting.

The current tax categories are classified into two categories according to whether tax accounting needs to be adjusted on the basis of financial accounting. First, there are no tax differences between financial accounting and tax accounting in adjusting accounting. For example, fixed assets investment direction adjustment tax, vehicle and ship tax, etc., tax accounting does not need to adjust accounting, because tax laws and accounting standards are the same as those of tax categories, and the other is tax categories that are different in accounting adjustment between financial accounting and tax accounting, such as enterprise income tax, consumption tax, business tax, value-added tax and urban maintenance and construction tax.

Business can be divided into the following three situations: first, accounting must be accounted for, and tax accounting does not need accounting; for example, the interest income earned by enterprises in Purchasing Treasury bonds, the total profits in financial accounting, and the tax law does not include taxable income; the two is that accounting for tax accounts must be accounted for and financial accounting does not need to be accounted for; for example, enterprises will use self produced goods for construction projects, accounting for value-added tax can only be included in the actual cost of construction projects, and the cost of carrying goods, while tax accounting requirements are included in the relevant income and costs, and income tax is paid; three, accounting and accounting must be accounted for, but accounting is not consistent with the time and business. There are differences in tax accounting between financial accounting and tax accounting.

The difference between accounting profit and taxable income is divided into time difference and permanent difference. The difference between total profit and taxable income, business income and taxable income in tax accounting adjustment accounting is also divided into temporal and permanent differences.

Permanent differences do not have continuity, only affect the current tax accounting adjustment accounting, and have no effect on the adjustment accounting of tax accounting after each period, and time difference has continuity (or ductility), which has an impact on the adjustment accounting of the current and subsequent periods.

Similar to the offset entries compiled in the preparation of consolidated accounting statements, accounting for time differences in tax accounting is similar to the continuous compilation in the offsetting entries, because the adjustment entries in tax accounting are only recorded in tax accounting vouchers and accounts books, and do not adjust accounting vouchers and account books in financial accounting. Therefore, the adjustment of timeliness difference is more complicated since the beginning of adjustment in second, and the cumulative impact of previous years should be taken into account.

Two. Dynamic and rigid

The dynamic accounting of tax accounting adjustment (or timeliness) means that its specific methods will change along with the changes of tax laws or accounting standards and accounting systems, including three situations: first, changes in accounting standards or accounting systems, and no changes in tax laws; two, changes in tax laws, and no changes in accounting standards or accounting systems; and three, changes in tax laws and accounting standards or accounting systems.

Of course, the tax accounting adjustment accounting is also relatively stable, its basic content will not change in a certain period.

The rigidity of tax accounting adjustment accounting (or mandatory and legal) means that the tax accounting method remains relatively stable in a certain period of time and can not be changed at will, otherwise it will affect the collection and stability of State Taxation.

Tax accounting is not as flexible as financial accounting.

The rigidity of tax accounting adjustment is determined by the compulsion of tax law.

Three, the whole process

The whole process of tax accounting adjustment refers to the whole process of tax accounting adjustment accounting, which is reflected in tax accounting vouchers, accounting books and accounting statements, and is reflected in accounting recognition, accounting measurement, accounting records and accounting reports.

Tax accounting adjustment accounting first mainly collects financial accounting information of tax related business through accounting vouchers, accounting books and accounting statements of financial accounting, and then sets up some adjustment accounts, such as "business income adjustment", "business cost adjustment", "extra business expenditure adjustment", "management cost adjustment", "current year profit adjustment" and other accounts.

When the tax law is inconsistent with accounting standards and accounting regulations, the amount of taxable income will be different from the accounting income. It should prepare adjustment entries, record them in tax accounting vouchers, register them in tax accounting books, and finally prepare tax accounting statements (tax returns).

Four, adjusting entries

The adjustment entries in tax accounting adjustment accounting are similar to the offset entries in consolidated accounting statements. The loan account method is used to set up accounts that are not normally used in financial accounting, such as "adjustment of non operating expenses" and so on. When calculating taxable income or taxable income, we mainly use profit and loss accounts and their adjustment accounts.

However, in order to facilitate double entry bookkeeping and make clear the ins and outs of accounting, adjusting entries also involve some assets, liabilities accounts and their adjustment accounts. The income and expense adjustment accounts involving income tax accounting adjustments should be pferred to the "profit adjustment account" of this year.

The adjustment entries in tax accounting adjustment accounting consist of three parts: Accounting symbol, account name and amount. Generally, double entry bookkeeping is adopted.

Compared with general accounting entries in financial accounting, the adjustment entries of tax accounting have the following characteristics:

1. the adjustment entry of tax accounting is outside the financial accounting system, while general accounting entries in financial accounting are adjusted within the financial accounting system.

The adjustment entries of tax accounting do not work for financial accounting data, but only adjust the tax accounting information.

2. the adjustment of tax accounting is applied to some accounts which are not used in financial accounting, such as "business income adjustment" and "profit adjustment", because adjustment entries are calculated to determine taxable income and taxable income.

3. the amount of tax accounting adjustment entries has no practical effect in itself. Only by combining it with other relevant data in financial accounting, can we calculate the tax basis of tax accounting (taxable income and taxable income) and should

When the tax amount is paid, it is of practical significance to adjust the accounting to the end.

4. the adjustment entries of tax accounting do not relate to the adjustment of accounting books and statements in financial accounting. The calculation of taxable income, taxable income and taxable amount in tax accounting not only involves the balance or amount of accounts in financial accounting, but also the amount of adjustment in entries.

For adjusting entries of time difference, the balance should not be carried forward at the end of the year, and the balance will be directly pferred to the next year.

For the adjustment of permanent differences, the end of the year needs to be turned.

For the direct adjustment of accounting, the account of "payable tax adjustment" should be hedged with the relevant assets and liabilities adjustment account. For indirect adjustment accounting, the "profit adjustment" or "business income adjustment" account will be hedged with the assets and liabilities adjustment account.

In this way, there will be no balance for the adjusted accounts involving permanent differences.