What is the Tax Payable Act? What is going on with both the tax payable law and the tax impact accou

Tax Payable Law.

It is to directly include the amount of tax paid due to the difference between the pre-tax accounting profit and the taxable income of the current period into the profit or loss of the current period, and not to defer it to subsequent periods. Under the tax payable method, the income tax expense included in profit or loss for the current period is equal to the income tax payable for the current period.

Under the tax payable law, the enterprise shall adjust the pre-tax accounting profit in accordance with the provisions of the tax law to obtain the taxable income, that is, the taxable income, and then calculate the income tax payable for the current period according to the tax rate stipulated in the tax law, which shall be directly included in the current profit or loss as an expense.

When calculating the income tax payable by the enterprise in accordance with the provisions of the tax law:

Borrow: Income tax.

Credit: Tax Payable - Income Tax Payable.

When the enterprise prepays the income tax payable in accordance with the regulations, it shall make the following accounting entries:

Borrow: Tax Payable - Income Tax Payable.

Credit: Bank deposits.

At the end of the month, the enterprise should transfer the debit balance of the "Income Tax" account to the "Profit of the Year" account as an expense, and make the following accounting entries:

Borrow: Profit for the current year.

Credit: Income Tax.

The tax payable method is a method of income tax accounting and is the opposite of the tax impact method. The tax payable method refers to the accounting treatment in which the amount of tax affected by the difference between the pre-tax accounting profit and the taxable income of the current period is directly included in the profit or loss of the current period and is not deferred to subsequent periods. Under the tax payable method, there is no need to recognize the amount of tax that affects the tax due to the difference between the pre-tax accounting profit and the taxable income, so the income tax expense included in profit or loss for the current period is equal to the income tax payable calculated on the taxable income for the current period.

This is not entirely accurate. The premise of the tax law is to establish certain tax obligations and the taxable objects to which the tax is applicable, as well as the rules for tax collection. Among them, the cash system is an important principle of tax law collection, which means that when the subject involved in the tax law establishes the tax liability and pays or deducts the corresponding tax, it must be based on the premise of the realization of the tax payment, that is, the corresponding tax law effect will only be produced when the relevant payment is actually received or paid.

In the specific tax collection operation, because the tax payable and the actual payment of individual taxpayers may deviate, the tax department usually needs to verify and manage the receivables and payables in order to better supervise taxpayers and ensure the timely collection of taxes. For some enterprises and taxpayers, due to their business characteristics and the restrictions of accounting rules, there may be a situation of receivables and payables. These receivables and payables may form certain overdue taxes or interest income, which involve the verification and related treatment of the tax administration department in accordance with the law.

To sum up, although the tax law mainly adopts the cash basis, there is also a tax administration and verification of receivables and payables. In the process of managing taxes in accordance with the law, the tax department will take into account the situation of receivables and payables, and at the same time, the balance receivables and payables are also an important concept of accounting.

Tax Payable Method: The treatment method of recognizing income tax expenses directly based on the income tax payable in the current year.

Tax Impact Accounting Method: This method of recognizing the temporal difference between accounting profit and taxable income as a current income tax expense and deferring the amount of the impact of the temporal difference on income tax to a later period through the "Deferred Tax" account.

The treatment of permanent differences is the same, the treatment of temporal differences is different, the tax payable method is simpler, and the tax impact accounting method is more in line with the matching principle.

The company's pre-tax accounting profit is 10 million, of which depreciation is 2 million, depreciation should be 1 million (time difference) according to the tax law, 500,000 yuan of interest on treasury bonds (permanent difference), no other tax adjustments, and the income tax rate is 40%.

Tax Payable Law.

Taxable income = 1000 + (200-100) - 50 = 1050 income tax payable = 1050 * 40% = 420

Borrow: Income tax 420

Credit: Tax Payable - Income Tax Payable 420

Tax Impact Accounting Act:

Income tax expense = (1000-50) * 40% = 380 loan: income tax 380 credit: tax payable - income tax payable 420

The tax payable method is based on cash receipts and payments, while the tax impact accounting method is based on the accrual basis.

The tax payable method is to recognize the income tax expense in the current period and include it in the profit or loss of the current period, rather than deferring it to subsequent periods. For example, the depreciation expense of fixed assets calculated according to the depreciation period selected by the enterprise in the current period is 90,000 yuan, and the depreciation expense of fixed assets calculated according to the depreciation period stipulated in the tax law is 86,000 yuan.

According to the provisions of the tax law, the depreciation difference of fixed assets shall be increased by 4,000 yuan, assuming that no other expenses are incurred, and the tax payable = 4,000 * 25% = 1,000

The tax payable is divided into value-added tax and business tax and additional value-added tax is 17% to extract, tax payable = output tax - input tax business tax = income * 5%, urban construction tax is 7% of business tax, education surcharge is 3% of business tax, and embankment protection fee is 1% of business tax

Answer]: The tax payable method is a method in which the difference between the pre-tax accounting profit and the taxable income of the current period is directly included in the profit or loss of the current period, rather than deferred to subsequent periods. The calculation steps for this method are:

Determine the accounting profit, that is, calculate the accounting profit for the current period according to the accounting system of the enterprise; In accordance with the provisions of the tax law, determine the amount of various differences to be adjusted, including permanent differences and temporary differences; The taxable income for the current period is calculated according to the addition and subtraction of tax adjustments from the accounting profits; The amount of income tax payable in the current period shall be calculated according to the amount of taxable income multiplied by the vertical curve rate of applicable income tax, and the amount of tax payable shall be processed according to the calculated tax payable.

To put it simply, the tax payable is an old subject. In 07, the new accounting standards changed the tax payable to the tax payable, and now many old accountants are still using the tax payable, but this does not affect anything. Just like in '07, when the amortized expenses and the withholding expenses were combined, the prepaid accounts are the same.

A new standard is the old system, the tax payable is only the tax, and the tax payable includes the tax payable and the national and local surcharges (such as education surcharges and waterway management fees, etc.) The taxes payable --- taxes payable --- taxes + fees. The tax payable generally refers to the value-added tax, business tax and consumption tax that should be paid after calculation. The tax payable generally refers to the taxes and fees paid in addition to value-added tax, business tax, and consumption tax.

Accounting enterprises calculate all kinds of taxes and fees payable in accordance with the provisions of the tax law, including value-added tax, consumption tax, business tax, sales tax, resource tax, land value-added tax, urban maintenance and construction tax, real estate tax, land use tax, vehicle and vessel use tax, education surcharge, mineral resources compensation, etc. Taxes payable VAT payable - (input tax, tax paid, unpaid VAT transferred, tax reduction and exemption, output tax, export tax rebate, input tax transfer, export offset tax payable for domestic products, transfer out of overpaid VAT).