Income tax is calculated based on the profit that is received from the result of the financial and economic activities of the organization and is reflected as income tax expense. The reflection of profit in the statement of financial activities for the reporting period is referred to as accounting profit. If we eliminate the influence of tax profit and differences on the financial result of the organization in the reporting period, then the accounting profit will be profit before tax.
It is necessary
Profit data
Instructions
Step 1
There are two options for discrepancies in determining tax and accounting profit. The first option is constant differences that do not change over a long period. Permanent differences interact with income tax, which is paid to the budget, and depend on the type of formation of taxable profits. In most cases, permanent differences may arise due to the effect on the amount of accounting profit of income or expenses that are not taken into account at the time of calculating tax profit.
Step 2
The second option is temporary differences that arise during the reflection of income and expenses in tax and accounting due to a time difference. Due to temporary differences between accounting and tax profit, it becomes necessary to ensure that actual profit and income tax are consistent. That is, when reflecting the accrual, income tax expenses must be distributed by periods. The tax that was charged for payment to the budget in the current reporting period can be attributed to expenses in another period for income tax.
Step 3
The current income tax is reflected on the credit of the subaccount "Calculations of taxes" No. 641, the payment of tax to the budget in accounting is reflected in the debit of account No. 641 and the credit of the account "Current accounts" No. 311. Tax expenses are recorded on the account "Income taxes" No. 98. The inclusion of tax expenses in the statement of the financial result of the organization is reflected in the credit of account No. 98 and the debit of the account "Financial results" No. 79. That is, the result of tax accrual is the reflection of income tax expense in an amount equal to the current tax, which adjusted for the amount deferred. From which it follows that income tax expenses are equal to the current tax minus, or the addition of a deferred tax.
Step 4
The accrual of the amount of the current income tax is reflected on the debit of account No. 98 and the credit of sub-account No. 641. Deferred tax assets are initially credited to the debit of account No. 17 and credit of account No. 641. The first accrual of deferred tax is recorded on the debit of account No. 98 and the credit of the account Deferred tax liabilities »No. 54. Deferred taxes on the balance sheet at the beginning of the period change the effect of temporary differences. The deferred taxes of the earliest periods are then debited first when calculating the current tax and income tax expense.
