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What Are The Temporary Differences In Income Tax?

2010/11/18 15:12:00 38

Taxable Temporary Differences In Income Tax

1. the temporary difference is

accounting

And tax law differences.

From the perspective of profit statement, the difference between accounting and tax law is reflected in total profits and liabilities.

pay taxes

Above the income.

The calculation of taxable income is generally based on the total profit and the accounting and tax laws.

difference

For example, the difference between business entertainment expenses, advertising fees and publicity fees.

In actual application, the method of calculating the total amount of the taxable income should be applied to the deduction of the total profit, which shows that the accounting and tax laws are mostly the same in terms of the confirmation of income and cost.

2. classification of differences

(1) permanent difference refers to accounting recognition of income cost costs, tax law is never recognized, tax law recognized income cost costs, accounting is never recognized.

For example, the tax bureau fines 10000 yuan, the accounting confirms that the extra business expenses are 10000 yuan, the tax law stipulates that the tax law can not be listed before, and the tax law does not recognize permanently, resulting in permanent differences.

(2) temporary differences mean that both accounting and tax laws confirm that there are temporary differences in the number of confirmed cases at a certain time, and that the most significant feature of temporary differences is the nature of future reversion.

For example, depreciation of fixed assets is the same.

If the original price of fixed assets is 500 thousand, the double depreciation method should be used in accounting depreciation, and the tax law stipulates depreciation according to the average age method.

The total amount of depreciation should be the same throughout the life span, but for a particular year, the amount of depreciation determined in accounting is different from the depreciation amount drawn from the tax law. The difference is temporary and can be reversed in the future period, that is, there is a temporary difference.