Accounting Treatment Of Enterprise Income Tax

First, the production of income tax accounting must be based on accounting standards and the general principles of accounting, and prepare accounting statements. The key point is to meet the needs of accounting information of enterprises and other information users.

Income tax accounting is a special accounting which reflects and monitors the tax activities of enterprises based on the state tax law and applies the basic theories, criteria and methods of accounting, so as to properly separate accounting income from taxable income so as to meet the requirements of the tax department.

Accounting standards and general financial rules allow enterprises to independently choose different accounting treatments. However, some accounting methods can not be accepted by the tax department. Therefore, there will be some differences between the accounting results of the same enterprise during the same accounting period and the taxable income calculated according to the income tax law.

This difference is mainly due to permanent differences and time differences.

The permanent discrepancy is due to the difference between the income and expenditure determined by the tax law and accounting standards when calculating net income.

If the penalty is paid, the taxable income can not be deducted from the taxable income.

From the point of view of accounting, fines are a cost for enterprises. They should be reflected in the profit and loss of business, allowing them to be deducted from their accounting earnings.

This difference occurs during each accounting period and, after such a difference occurs, it can not be reversed in the subsequent accounting period.

Time difference is due to some income and expenditure items, calculating the accounting income and the calculation of taxable income time is inconsistent, as time goes on, the difference between accounting income and taxable income will be changed in the later accounting period, and will be reduced to make the total amount of each period equal.

For example, when accounting standards twenty-eighth, when all kinds of inventories are issued, enterprises can choose the FIFO, weighted average method, moving average method, individual valuation method, last in first out method and other methods to determine their actual cost according to the actual situation.

However, the tax authorities can not accept the LIFO according to the tax law, which requires enterprises to adjust their accounting income.

The thirty-second provision of the general provisions of enterprise finance stipulates: "the profits of enterprises should be adjusted according to the state regulations, and the income tax shall be paid according to law."

In western developed countries, the main source of tax revenue is income tax, so tax accounting is often referred to as income tax accounting.

Two. Accounting treatment of income tax

Because of the permanent and time difference between accounting income and taxable income, different accounting treatments should be adopted.

(1) the tax payable law

The difference between the taxable income and the accounting income at a time when an enterprise occurs, such as the occurrence of the current period and the failure to turn back in the later period, when calculating the income tax, shall be included in the current profit distribution according to the tax payable according to the tax provisions.

Example: the total annual tax paid salary of an enterprise is 1 million 80 thousand yuan, the actual salary paid by 19 x years is 1 million 250 thousand yuan, the public welfare donation is 1 million yuan, and the administrative penalty is 50 thousand yuan.

The total profit calculated by the company is 19 yuan, accounting for 16 million 800 thousand yuan, and the corporate income tax rate is 33%.

The tax paid part is 170 thousand yuan (125-108), and the public welfare contribution is 510 thousand and 600 yuan.

[(1600 +17+5) x 3%], which exceeds the permitted portion is 489 thousand and 400 yuan.

Enterprises should make accounting treatment as follows:

1. The tax adjustment is =17 million yuan +5 million yuan +48.94 10000 yuan =70.94 million yuan.

2. Taxable income =680 10000 yuan +70.94 million yuan =1750.94 yuan

3. The amount of income tax payable is =1750.94 million yuan * 33%=577.8102 million yuan.

Loan: profit distribution - income tax payable 5778102

Loan: tax payable - income tax payable 5778102

(two) tax impact method

The difference between taxable income and accounting income at a time when an enterprise occurs can be reversed in the current period and can be turned back in the later period. The effect of this time difference on the income tax should be listed as profit distribution according to the payable income tax calculated in the current accounting period of the enterprise. At the same time, the time difference should be used as the deferred tax, and the deferred tax account should be set up. The accounting treatment method can be divided into the deferred method and the debt method.

The deferral method is to reserve the deferred tax due to the time difference in this period until the opposite change occurs.

The debt law is to reserve the estimated deferred tax due to time difference in the current period to the contrary when the opposite change occurs.

Example: a project invested by a certain enterprise for a long-term investment of 60 million yuan. After the project has been put into operation, it will be used for 10 years in accordance with the accounting system. According to the tax law, it should not be less than 6 years. Suppose that the enterprise achieves 30 million yuan in profits every year and the income tax rate is 33%.

(1) the monthly depreciation allowance is =6000 million yuan, 10 yuan 12=50 10000 yuan, and the depreciation is the same in 10 years.

Borrow: basic production 500000

Loan: accumulated depreciation 500000

Second, calculate enterprise income tax.

The annual accounting depreciation is =6000 million yuan, 10=600 million yuan:

The annual tax allowable amount is =6000 million yuan, 6=1000 million yuan.

The difference is =1000 million yuan -600 million yuan =400 million;

Accounting calculation should pay income tax =3000 million yuan * 33%=990 million.

First year accounting entry:

Loan: profit distribution - income tax payable 9900000

Loan: deferred tax 1320000

Payable tax - income tax payable 8580000

The same is true in second, third, fourth, 5 and 6 years.

The project has been fully depreciated in the first six years, and the annual depreciation rate is 6 million yuan for the next four years. When calculating the enterprise income tax, it should be adjusted to 6 million yuan, 33%=198 million, and the seventh year accounting entry is as follows:

Loan: profit distribution - income tax payable 9900000

Deferred tax 1980000

Loan: tax payable - income tax payable 1880000

Eighth, ninth, tenth the same year.