Why corporate income tax and income tax expense are different

Because corporate income tax is a tax term, not an accounting concept, while income tax expense is an accounting account and belongs to the expense category.

Business income tax is a tax levied on the production and operation income and other income of China's domestic-funded enterprises and business units. The range of taxpayers is larger than corporate income tax. Enterprise income tax payers refer to all domestic-funded enterprises or other organizations within the territory of the People's Republic of China that implement independent economic accounting, including the following 6 categories:

1) state-owned enterprises; (2) collective enterprises; (3) private enterprises; (4) associates; (5) Joint-stock enterprises; (6) Other organizations with production and operation income and other income. The object of enterprise income tax is the income obtained by the taxpayer. It includes income from the sale of goods, income from the provision of services, income from the transfer of property, income from dividends and dividends, income from interest, income from rent, income from royalties, income from receiving donations and other income.

Income tax expense refers to the income tax payable on the operating profits of an enterprise. "Income tax expense", which accounts for the income tax borne by the enterprise, is a profit and loss account; This is generally not equivalent to the income tax payable in the current period, as there may be "temporary differences". If there is only a permanent difference, it is equal to the income tax payable for the current period.

In response to the national taxation policy, the monthly income tax collection is realized by the method of monthly final settlement, that is, the policy of refunding more and making up for less. The specific performance is as follows: the enterprise sets up a final settlement account, and deposits a certain amount, and the tax is settled through the final settlement account when the income tax of the current period is calculated, and even if there is a difference in the later period, it will be returned or completed in the next accounting period.

Corporate income tax refers to the tax payable, and income tax expense refers to the direction of the tax payable. It's like taking a loan of 100,000 yuan from a bank and depositing it in a bank - the bank deposit has increased by 100,000 yuan, which is your own; Bank borrowing increased by 100,000, which is **.

Taxes will be different;

Income tax is determined in accordance with the provisions of the tax law, and income tax expense is determined according to accounting, and there is a time difference between the two.

For example, the accounting accrues the depreciation of fixed assets according to accelerated depreciation, but the tax requirement must be depreciated by the straight-line method, so there is a difference in tax accounting, so the two accounts are different.

Income tax is a type of tax, and for enterprises, it generally refers to corporate income tax.

Income tax expense is an accounting account (or account), and the income tax expense is calculated for the amount of enterprise income tax accrued, when it is accrued.

Borrow: Income tax expense.

Credit: Tax Payable - Corporate Income Tax.

When paying taxes.

Borrow: Tax payable - corporate income tax.

Credit: Bank deposits.

The income tax expense account is a profit and loss account, and it must be carried forward at the end of the month.

Borrow: Profit for the current year.

Credit: Income tax expense.

Income tax and personal income tax.

Answer: The difference between business tax and income tax of a company: 1. Business tax and income tax are two different taxes.

1) Business tax: Units and individuals within the territory of the People's Republic of China that provide the services specified in these Regulations (hereinafter referred to as taxable services), transfer intangible assets or sell immovable property are taxpayers of business tax (hereinafter referred to as taxpayers) (2) Enterprise income tax: Enterprises within the territory of the People's Republic of China, except for foreign-invested enterprises and foreign enterprises, shall pay enterprise income tax on their production, business income and other income in accordance with these Regulations.

2. Different tax bases (1) Turnover is the tax basis for the business tax provided by the taxpayer is turnover, all the price and off-price expenses charged to the other party for taxable services, transfer of intangible assets or sale of immovable property. Off-the-money charges include handling fees, orange numbers**, fundraising fees, collection of funds, advances and other off-price charges of various natures. (2) All the net income of the enterprise, regardless of whether its formation channel is the income from production and operation, or the income from foreign investment and non-operating income of the enterprise, shall be included in the taxable income of the enterprise, and shall not be included in the taxable income of the enterprise, regardless of whether the formation process is directly related to the production and operation of the enterprise.

The difference between corporate income tax and income tax expense is the difference in the concepts of the two. Income tax expense is an accounting account used to calculate the enterprise income tax of the current period of the enterprise, and the income tax expense recognized by the accounting enterprise should be deducted from the total profit of the current period; Enterprise income tax belongs to the category of taxes, which is a tax levied on the production and operation income and other income of enterprises and other organizations that obtain income within the territory of China.

In the accounting treatment, for the enterprise income tax accrued by the enterprise, the "income tax expense" account needs to be debited and the "tax payable - income tax payable" account needs to be credited; When an enterprise pays enterprise income tax, it needs to debit the "Tax Payable - Income Tax Payable" account and credit the "Bank Deposit" account.

Income tax expense refers to the income tax payable on the operating profits of an enterprise. "Income tax expense", which accounts for the income tax borne by the enterprise, is a profit and loss account; This is generally not equivalent to the income tax payable in the current period, as there may be "temporary differences". If there is only a permanent difference, it is equal to the income tax payable for the current period.

In response to the national taxation policy, the method of monthly income tax collection and collection of monthly final settlement is realized, that is, the policy of refunding more and making up for less. The specific performance is as follows: the enterprise sets up a final settlement account, and deposits a certain amount, and the tax is settled through the final settlement account when the income tax of the current period is calculated, and even if there is a difference in the later period, it will be returned or completed in the next accounting period.

Article 2 of the Individual Income Tax Law shall pay individual income tax on the following individual incomes: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from author's remuneration; (4) Income from royalties; (5) Business income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from the transfer of property; (9) Incidental gains.

Be.

According to the query of Dongao accounting**, the income tax expense is the enterprise income tax, and the income tax expense refers to the income tax payable on the operating profits of the enterprise, which is divided into current income tax expense and deferred income tax expense. Accounting entries for current income tax expense: debit:

Income tax expense, credit: tax payable - income tax payable. Formula for calculating income tax expense for the current period:

Current income tax expense = taxable income for the current period The applicable income tax rate for the current period.

Enterprise income tax is a kind of income tax levied on the production and operation income and other income of the royal enterprises and other organizations that obtain income within the territory of China.

Income tax expense is corporate income tax. The object of enterprise income tax is the taxpayer's production, business income and other income within and outside China in each tax year. The taxpayer of enterprise income tax should also have a settlement account in the bank; Independently establish account books and prepare financial and accounting statements; Calculate conditions such as profit and loss independently.

The basis of enterprise income tax is the taxable income.

Where a taxpayer makes a false tax declaration or fails to make a tax declaration by means of deception or concealment, and evades the payment of a relatively large amount of tax and accounts for more than 10% of the tax payable, he shall be sentenced to fixed-term imprisonment of not more than three years or short-term detention and shall also be fined; Where the amount is huge, and accounts for more than 30 percent of the tax payable, the sentence is to be between three and seven years imprisonment and a concurrent fine. After the tax authorities issue a recovery notice in accordance with the law, the tax payable shall be paid in accordance with the law, and the overdue penalty shall be paid, and the criminal liability shall not be investigated; However, there is an exception for those who have received criminal penalties for tax evasion within five years or have been given two or more administrative penalties by the tax authorities.

Legal basisArticle 3 of the Enterprise Income Tax Law of the People's Republic of China.

Resident enterprises shall pay enterprise income tax on their income within and outside China.

If a non-resident enterprise establishes an institution or place in China, Chasun shall pay enterprise income tax on the income obtained in China by the institution or place that it has not set up or established, as well as the income that occurs outside China but has an actual connection with the institution or place established by it.

If a non-resident enterprise has not established an institution or place in China, or if it has established an institution or place but the income obtained has no actual connection with the institution or place it has established, it shall pay enterprise income tax on its income in China.