What is income tax accounting when it comes to income tax accounting

The actual amount of enterprise income tax payable is not based on income tax expense, but on the tax payable - income tax payable.

Borrow: Income tax expense.

Deferred tax assets.

Credit: Tax Payable - Income Tax Payable.

Deferred tax liabilities.

Deferred tax assets and deferred tax liabilities are accounting for temporary differences, if the entries are made into deferred tax assets and income tax expenses, it may be that the deferred tax assets at the end of the period are more than the deferred tax assets at the beginning of the period, and there is a benefit from the deferred income tax this year, so if only one account is registered, then it is required.

Deferred tax assets are debited and income tax expense is debited.

If you borrow more than you borrow, you need to use the difference between the deferred tax asset and the deferred tax liability to determine whether the income tax expense is on the debit or credit side.

Income tax accounting is a branch of tax accounting that studies the accounting theories and methods for dealing with the difference between accounting income and taxable income, and is a set of accounting principles, procedures and methods that reflect the recognition, measurement and reporting of enterprise income tax.

This is the complete entry:

Borrow: Income tax expense.

Income tax deferred assets.

Credit: Tax Payable - Income Tax Payable.

What you said about underpayment is wrong, no matter what your accounting treatment is, the amount of tax payable - income tax payable is determined by the tax bureau will not change. Income tax expense is the amount recognized by your business, and the difference is put into income tax deferred assets or assets.

Borrow: Income tax expense.

Credit: Tax Payable - Income Tax Payable (Actual Current Payment) Credit: Income Tax Deferred Assets.

Credit: Income tax expense.

The difference between the debit and credit side of the income tax expense is the actual amount payable in the current period, and the difference between the actual amount paid in the current period is the amount of income tax deferred assets, that is, the tax to be underpaid in future periods.

Income tax accounting refers to the accounting treatment of income tax in the financial statements, including the determination of the amount of expenditure or deduction in relation to income tax in an accounting period, and the presentation of this amount in the financial statements. Due to the different bases and purposes of the accounting standards and the income tax law, there will be differences between the accounting profits and tax income of enterprises, and the tax department should make tax adjustments to the pre-tax income calculated by the taxpayers in accordance with the accounting standards when calculating and collecting the enterprise income tax, which determines the necessity of establishing income tax accounting. One of the reasons for the difference between taxable income and accounting profit is that some items should be included in one calculation and excluded in another, resulting in a difference, which is called a permanent difference; The second reason is that the time when some income and expenditure items are included in the taxable income and the time when they are included in the accounting profit are inconsistent, and the resulting difference is called temporal difference.

Permanent differences cannot be reversed or offset at a later date, while temporal differences can be reversed at a later period.

For the permanent differences and temporal differences caused by taxpayers, the "tax payable method" and the "tax impact accounting method" can be used in accounting. The tax payable method is to directly include the amount of tax paid due to the difference between the accounting profit before tax and the taxable income in the current period to the profit or loss of the current period, without deferring it to future periods. The tax impact accounting method is to treat the enterprise income tax as an expense of the enterprise when it obtains income, and should be included in the same period as the relevant expenses and income, and the tax impact caused by the time difference is included in the tax expense in the income statement, and is listed as deferred tax in the balance sheet.

1. About the deduction policy for individual income tax donations.

1. Comprehensive income. The concept of comprehensive income is proposed in the new individual income tax law, which is the general term of the four incomes of wages and salaries, labor remuneration, author's remuneration and royalties in the original individual income tax law. After the introduction of comprehensive income, these four types of income will be included in the annual calculation of individual income tax.

2. Annual final settlement. Under the original individual income tax law system, our personal income in wages, salaries, labor remuneration, author's remuneration, etc. are calculated according to the monthly income of the taxable income, when the introduction of annual reconciliation, our individual income tax is withheld every month, and at the end of a tax year, the comprehensive income of the individual is the balance after deducting expenses of 60,000 yuan from the income of each tax year and special deductions, special additional deductions and other deductions determined according to law, which is the taxable income, and then deducted according to the tax rate corresponding to the taxable income.

3. Tax avoidance clauses. Article 8 of the new Individual Income Tax Law stipulates that under three circumstances, the tax authorities have the right to make tax adjustments to the taxpayer's income, and if there is a need to pay back tax after the adjustment, the tax shall be paid in accordance with the law and interest shall be levied. It is mainly aimed at taking advantage of the differences in tax policies between countries and regions to evade the collection and management of tax laws and tax obligations in Chinese mainland.

Enterprise income tax, according to the "Accounting System for Business Enterprises", is a profit and loss account, which is listed separately as an "income tax" subject.

Individual income tax is clearly stipulated in the "Accounting System for Business Enterprises" to be accounted for in the "tax payable" account, and there is a sub-heading "individual income tax payable".

Both corporate income tax and individual income tax are taxes, but the subject of tax payment is different.

Individual income tax is withheld and paid by the individual payment unit.

1. Accounting entries for enterprise income tax:

1. Accrual. Borrow: Income tax expense.

Credit: Tax Payable - Corporate Income Tax Payable.

2. Carryover. Borrow: Profit for the current year.

Credit: Income tax expense.

3. Payment. Borrow: Tax payable - Corporate income tax payable.

Credit: Bank deposits.

2. Individual income tax accounting entries:

1. Withhold from wages.

Borrow: Employee remuneration payable.

Credit: Taxes Payable - Personal Income Tax.

2. Payment. Borrow: Tax payable - personal income tax.

Credit: Bank deposits.

1. Income tax Borrow: income tax.

Credit: Tax Payable - Income Tax.

Borrow: Tax Payable - Income Tax.

Credit: Bank deposits.

2. Individual income tax loan: other receivables - withholding and payment of individual income tax credit: tax payable - individual income tax.

Debit: Tax payable - personal income tax.

Credit: Bank deposits.

1.Accrual of personal income tax:

Borrow: Employee Compensation Payable - Wages.

Credit: Fees payable - personal income tax.

When paying individual income tax: borrowing: payable - individual income tax.

Credit: Bank deposits.

2.Income tax accrual:

Borrow: Income tax expense.

Credit: Tax Payable - Income Tax.

When paying: debit: tax payable - income tax.

Credit: Bank deposits.

1. Enterprise income tax:

1. Accrual. Borrow: Income tax expense.

Credit: Tax Payable - Corporate Income Tax Payable.

2. Carryover. Borrow: Profit for the current year.

Credit: Income tax expense.

3. Payment. Borrow: Tax payable - Corporate income tax payable.

Credit: Bank deposits.

2. Individual income tax.

1. Withhold from wages.

Borrow: Employee remuneration payable.

Credit: Tax Payable - Individual Tax.

2. Payment. Debit: Tax payable - individual tax.

Credit: Bank deposits.

3. Sole proprietorship or partnership enterprises do not pay enterprise income tax, but pay individual income tax (including individual income tax deduction when the company distributes profits).

1. Withdraw (distribute) profits.

Debit: Profit distribution - distribution of profits.

Credit: Profit payable.

2. Withholding tax.

Borrow: Profit payable.

Credit: Tax Payable - Individual Tax.

3. Pay individual income tax.

Debit: Tax payable - individual tax.

Credit: Bank deposits.

4. Pay dividends after withholding tax.

Borrow: Profit payable.

Credit: Bank deposits.

The withholding and payment of individual income tax is used in the account of "other payables - withholding and payment of individual income tax", and when it is accrued: debit: employee remuneration payable - wages.

Credit: Other payables - withholding and payment of individual income tax.

When Payment: Borrow: Other Payables--Withholding and Payment of Individual Income Tax Credit: Bank Deposit.

The remuneration payable to employees is the wages payable, and the individual income tax is one of the deductions, and the deduction items can be offset by the remuneration payable to the employees in order to obtain the actual wages (the actual payment made by the company issued by the company).

What about the accounting entries of corporate income tax and individual income tax? Answer: The same as above, the individual income tax is calculated and put in the salary payable to employees, how to flush it out when it is paid? I guess is it put on the management fee?

Here's what it takes to ask about the issue.

When allocating salaries, borrow: selling expenses, administrative expenses.

Credit: Employee Compensation Payable - Wages.

When wages are paid, borrow: Employee remuneration payable - wages.

Credit: Tax Payable - Individual Income Tax Payable.

Cash on hand. In this way, the payable employee compensation account is flat.

When the time comes to pay taxes, the flat is the tax payable - personal income tax payable account.

Income tax expense refers to the income tax payable by an enterprise to obtain pre-tax profits. "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.

Calculation (1) Income tax expense is calculated in accordance with accounting regulations;

2) Income tax expense is calculated as an expense, and the "income tax expense" account is set up in the accounting for accounting;

3) Income tax expense = income tax payable + deferred income tax.

In layman's terms, income tax accounting is how to determine income tax expenses on the basis of income tax payable. Under the balance sheet debt method, income tax expense is calculated in three steps:

The first step is to determine deferred income tax – excluding the income tax impact of transactions or events that are credited to owners' equity.

Deferred tax expense = increase in deferred tax liabilities + decrease in deferred tax assets.

Deferred tax income = decrease in deferred tax liabilities + increase in deferred tax assets.

Deferred income tax = (closing balance of deferred tax liabilities - opening balance of deferred tax liabilities) - (closing balance of deferred tax assets - opening balance of deferred tax assets) = increase in current deferred tax liabilities - decrease in current deferred tax liabilities - increase in current deferred tax assets + decrease in current deferred tax assets = deferred tax expense - deferred tax income.

If a transaction or event is attributable to owners' equity in accordance with accounting standards, deferred tax assets or deferred tax liabilities arising from such transactions or events and changes therein should also be included in owners' equity and do not constitute income tax expense in the income statement.

In finance, "expense" has two meanings, one is the cost in a narrow sense, which refers to the various expense accounts in the accounting account (mainly refers to the period expenses), such as management expenses, financial expenses, operating expenses, manufacturing expenses, etc., and further refers to the detailed accounts under the first-level accounts, such as management expenses - labor insurance costs, operating expenses - warehousing and storage costs, construction in progress - interest expenses, etc. At this level, the "cost" is included alongside the expense, which is what we often call "cost and expense".

Another meaning of "expense" is a generalized expense, that is, all the deduction of operating income expenses are regarded as expenses, at this level, the level of "cost" is lower than it, "cost" is one of the components of "expense", which is "income and expenses".

Similar to this, there is cash, chivalrous cash only refers to cash money in hand, and cash in a broad sense also includes cash deposits and bank deposits.

Understanding the two meanings of "expense" makes it easy to understand the meaning of income tax expense.

Standing at the level of "income and expenses", income tax expenses, like costs, period expenses and other expenses, belong to the deduction items of "income" under the large "expenses", and we call it "income tax expenses" in financial management. It is not the expense incurred in paying the income tax, but the income tax itself, let alone the public relations expense.

It can also be understood from another point of view, the chivalrous expense is the level of financial accounting, the scope of application is the various accounting accounts and their detailed accounts, the broad sense of the expense is the level of financial management, and the scope of application is all the items on the income statement that prefix "minus".

Income tax expense refers to the income tax that should be attributable to the current period according to the accrual basis of accounting.

The reason for the formation is that the accounting profit calculated by accounting is inconsistent with the taxable income calculated by the tax law, resulting in the inconsistency between the enterprise income tax calculated in accordance with the accounting standards and the actual amount of enterprise income tax paid.

Income tax expense is a profit and loss account, and after the end of the period is carried forward to the profit account of the current year, the debit side of the account without the end of the period shall register the income tax accrued by the registered enterprise, and the credit side shall register the income tax transferred to the profit of the current year.

Income tax expense refers to the income tax payable on the operating profits of an enterprise. Income tax expense is the income tax borne by the enterprise.

There are two types of income tax: personal income tax and corporate income tax.