What are the main items in the income statement to be adjusted for income tax adjustment?

The items of tax increase and decrease are as follows:

1. The deduction limit for welfare expenses is 14% of wages and salaries, and the excess part is increased.

2. The education expenses of employees shall be limited to the deduction of wages and salaries.

3. The deduction limit for trade union funds is 2% of wages and salaries.

4. The deduction limit for donation expenses is 12% of the total profit.

5. The deduction limit for business entertainment expenses shall be 5/1000 of the operating income and 60% of the business entertainment expenses.

6. Advertising and business promotion expenses are deducted at 15% of the operating income.

7. The provision for asset impairment has been fully increased.

8. All the expenses withheld that have not actually occurred shall be increased.

9. The depreciation period of fixed assets is less than the tax law stipulates that it needs to be increased.

10. Fines and late tax fees need to be increased.

11. Supplementary endowment insurance and medical insurance should also be increased if the limit exceeds the limit.

What items are not allowed to be deducted from gross income?

a. Capital expenditure, the purchase of fixed assets, construction expenditure, the transfer of intangible assets, development expenditure, and the interest on capital, including the loan interest of the owner's loan investment, and the expenditure on foreign investment.

b. Fines for illegal operations and losses of confiscated property.

c. Late fees, fines and fines for various taxes.

d. Other expenses unrelated to the acquisition of taxable income.

e. The part of the compensation for the loss of natural disasters and accidents.

f. Non-advertising sponsorship expenditures of taxpayers.

g. Dividends distributed to investors.

h. Non-public welfare relief donations, etc.

The supervision and inspection of non-deductible items shall be carried out in strict accordance with the provisions of the Tax Call-in Law, and if they are inconsistent with the provisions of the Tax Law, they must be adjusted.

To sum up, the financial appropriation, the administrative fees collected in accordance with the law and included in the financial management, the first and other non-taxable income. It is not included in the income tax payable, but the income from mid-way transfer is taxable.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and administration of all kinds of taxes levied by the taxation authorities in accordance with the law.

Article 3 The levy and suspension of taxation, as well as the reduction of taxes, tax exemptions, tax refunds, and tax payments, shall be carried out in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***.

No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on tax collection, suspending, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.

Units and individuals that bear tax obligations as stipulated by laws and administrative regulations are taxpayers.

Units and individuals that are required by laws and administrative regulations to withhold and remit, collect and remit taxes are withholding agents. Taxpayers and withholding agents must pay, withhold, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

Summary. The basic principle of the statement is to start from the total profit in accounting, first multiply by the applicable tax rate of the parent company to obtain the "income tax expense calculated according to the statutory applicable tax rate", and then on this basis, through certain item adjustments, the final income tax expense in accounting is obtained, in which the "income tax expense" in the last line should be equal to the income tax expense on the income statement, that is, the sum of the current income tax expense and deferred income tax expense.

The basic principle of the table is to start from the total amount of profit and profit in the accounting, first multiply the applicable tax rate of the parent company to obtain the "income tax expense calculated according to the statutory applicable tax rate", and then on this basis, through certain item adjustments, the total income tax expense in the accounting is finally obtained, in which the "income tax expense" in the last line should be equal to the income tax expense on the income statement, that is, the sum of the current income tax expense and deferred income tax expense.

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The adjustment process for accounting profit and income tax expense is as follows:

Monomer level. In fact, carefully speaking, the adjustment process of individual accounting profits and income tax expenses is very simple, because there must be income tax expenses in your manuscript, and you know what the digital content of the increase and decrease is, or the digital audit of the tax audit can be used directly, so we can directly fill in the numbers in this process, and write 3 points of attention in this alone.

**The figures filled in here need to be multiplied by the tax rate in addition to the total profit.

Is there an asset impairment loss?

We should pay special attention to the fact that there are no asset impairment losses and credit impairment losses in this table, because there are in the tax adjustment, for example, the asset impairment loss of the income statement is 1 million, so when calculating the taxable income, the tax adjustment must be made to increase the taxable income, but there is definitely no in this adjustment process.

Assumption: The accounting profit is 1.75 million, of which the asset impairment loss is 250,000, then the taxable income is 175 + 250,000 = 2 million, and the income tax expense is 200 * 25% = 500,000.

If the asset impairment loss is 250,000, then it should be confirmed:

Debit: Deferred tax assets 25*25% = Credit: Income tax expense.

Definition of Accounting Profit and Income Tax:

Accounting profit refers to the balance of the total income of the enterprise minus all explicit costs or accounting costs. Explicit cost refers to the actual expenditure incurred by the enterprise in order to obtain various production factors required for production, mainly including the wages paid to employees, various raw materials, parts and components purchased in production, etc.

When profit is mentioned in economic analysis, it refers to the surplus of all the income obtained by the enterprise after deducting all the opportunity costs of all factors of production such as land, labor, and capital. Opportunity cost refers to the cost at which a manufacturer produces a product or service. Hidden costs are not considered in the calculation of accounting profits, that is, the opportunity costs caused by the production of factors that have long been occupied by the enterprise and are not purchased or rented, which cannot be reflected in the accounting records, but this part of the cost must be considered in the economic analysis.

Income tax is the definition and percentage of individual taxable income in different periods, and sometimes it is also taxed separately for manuscript fee income, salary income and incidental income (such as lottery wins). Income tax, also known as income tax and income tax, refers to a type of tax levied by the state on the various incomes of legal persons, natural persons and other economic organizations within a certain period of time.

Income tax (Hong Kong, China"Income tax";Chinese mainland, Taiwan, Japan and South Korea"Income tax"It is one of the types of taxes, and is taxed according to natural persons, companies or legal persons. There are different tax rate systems in different parts of the world, such as progressive tax rates and single flat tax rates.

Income tax is a general term for all income that is taxed. In some countries, corporations are taxed as corporations, which are often referred to as corporate taxes, or corporate income taxes, or profit-seeking comprehensive income taxes.