There are some differences between taxable and accounting income. Profit related to the income of previous years, but determined in the current reporting period, is included in the reporting of the current year and is considered the financial result of the organization. Taxable profit is calculated for any type of activity.
It is necessary
Calculator, data on permanent and temporary differences
Instructions
Step 1
The tax amount is 20% of the profit and is reflected in the tax return. In tax accounting, there is a list of types of taxable profit, therefore, not all data from the balance sheet will participate in the calculations.
Step 2
Tax expenses should be accounted for according to the principle of temporal certainty of economic activity, that is, it reflects not only the current amount of tax, but also the amount of the future period. Then profit before tax will decrease by the amount of funds indicated in the declaration, as well as by the amount of deferred taxes.
Step 3
To reflect taxable profit, the permanent positive or negative differences in the current period must be added to the changes in the temporary differences. Where the permanent differences are determined by adding together the changes in deductible temporary differences for the current period and the changes in taxable temporary differences for the same period. The result is multiplied by the income tax rate. This amount is the amount of tax that needs to be paid into the budget.
Step 4
Where permanent differences are the income and expenses of accounting profit or loss of the reporting period with the profit of other periods excluded from the tax base, temporary differences are accounting income and expenses generated in one period, as opposed to the tax base, which is formed in another period. These differences appear due to the difference in tax and accounting rules.
Step 5
Permanent differences appear when the facts of recognition of income or expense occur, and temporary differences occur when the moments of recognition do not coincide. Permanent differences are associated with only one taxation period and cannot affect any others, and temporary differences are always associated with several periods.
Step 6
Account 68 "Calculations of income taxes" reflects the contingent tax expense and tax liability. Deferred taxes are reflected in account 09 "Deferred tax assets" and account 77 "Deferred tax liabilities". Current tax is not displayed separately.
