If accounting income is recognized earlier than define them in the tax, and revenues, respectively, occur and are recorded later, there is a temporary (deductible) difference. VVR is income or costs that are fixed in the preparation of the financial profit in the current period. Temporary (deductible) difference – the amount by which the taxable income is greater than accounting. In subsequent periods this amount will disappear.
Preconditions for the emergence of
Temporary (deductible) differences arise in cases when:
- The amount of accrued income (e.g., depreciation) in accounting more than tax.
- An entity that applies the cash method, expenses accrued but not paid in fact.
- The net loss for last year was not used in the current and carried forward.
- In this period was overpaid income tax and should be included in the future payments.
A temporary difference leads to the appearance of a deferred tax. It, in turn, leads to a reduction in the deductions for profits in the forthcoming periods.
Taxable temporary differences appear when the costs in the accounting are recognized later than in the tax, and revenues, respectively, earlier. This leads to the fact that in the current period profit subject to taxation, is smaller than accounting. However, in the upcoming reporting cycles will change. In the following periods the amount of financial profit would be less than the tax.
The causes of HBP
A temporary taxable difference may appear in cases where:
- Enterprise using the cash method, was assessed the penalties, the proceeds from the sale, but the money was not received.
- The amount of accrued expenses in the financial statements is less than in the tax.
- The company received installments or defer the deduction of income tax.
HBP can also occur due to the use of different depreciation methods for tax and accounting, when was the last assessed amount less than in the first.
Deferred tax assets and liabilities
If temporary (deductible) and any difference will be multiplied by the rate of mandatory contribution to the budget, you get the same amount of deductions on profits that have already paid, but will be counted in the future. This value is called a deferred tax asset (DTA).
IT represents the positive difference between the actual, current deduction on profits and contingent expense payment, calculated from the profits. The write-off of deferred assets can be done with CQ. 09/00 in subsequent periods. If the upcoming cycle is dampened, in the financial statements on the basic means is not charged, and tax charged. Taxable temporary difference is calculated and deducted, but it has the opposite sign. This value leads to higher contributions to profits in the upcoming periods. The amount that you must pay, is IT (deferred tax liabilities).
Deferred tax liabilities are recognized in that cycle, which is formed on the respective temporary differences. The calculation is carried out according to the formula:
IT = the Rate of payment for a profit x HBP.
To understand better the essence, you can take the VAT from revenue when establishing the obligation to pay to the budget. This VAT is fixed at the MF. 76 as an upcoming payment. Also will the account deferred tax liabilities for contributions to profit (Sch. 77).
During the reduction or complete elimination of NVR will be gradually repaid deferred tax liabilities. Dimension of the corresponding article information will be corrected. If there is a disposal of an obligation or asset that was made charging these amounts will not be forthcoming to influence the amount of income tax. In this case IT is written off.
Records deferred tax liabilities on account of losses and profits. They are reflected under the debit Sch. 99, loan CQ. 77. In the reporting period, the indicator on the line 2420 “deferred tax liabilities” is made the value of newly emerging IT and repaid the amount. In the process of filling lines 2430 and 2450 it is necessary to apply the principle of “debit minus credit.” From the incoming turnover in the MF. 77 and 09 the expenditure is deducted and is determined by the sign of the result. The report on the respective rows indicates a negative (in parentheses) or a positive value. If the change in deferred tax liabilities will increase, it will lead to lower charges for profit, and if downward, on the contrary, increases.
Current income tax
It is the sum of the actual payment in the accounting period in the budget. This value is determined in accordance with the size of the conditional consumption/income and adjustments for amounts that generate regular payments, deferred tax assets and liabilities. Thus, the following formula is used:
TN = UD (SD) PNA – PNA SHE – IT.
The scheme for calculating T is provided in the RAS 18/02 (p. 21). To check the correctness of the calculation should use an alternative method:
TN = taxable profit in the reporting period x income tax rate.
If the enterprise carries on constant payments to the budget, the absolute difference between conditional payment of assessed financial profit, and the current will be equal to the deferred tax assets minus deferred tax liabilities. This value will affect the amount of current payments on profits.
Deferred tax liability: transactions
According to the structure of the income statement for determining net profit, the formula is used:
ЧП = БП + ОНА - IT - ТНП,
where BP is the amount of accounting profit; ТНП - the current tax.
This formula provides deferred tax assets and deferred tax liabilities in the balance reflected on:
- deb. Sch. 09, kred. Sch. 68.
- deb. Sch. 68, credit. Sch. 09.
- deb. sc. 68, credit. sc. 77.
- deb. sc. 77, credit. sc. 68.
They adjust the size of the profit tax. With net income, these articles do not apply. To reflect the method of calculation of the current contributions to profit and to give simultaneously information on the income distribution, it is possible to show two positions: deferred tax assets and deferred tax liabilities affecting the MF. 68 and 99. The latter is allowed to write in the explanatory note or by free line.
How to show a deferred tax liability? Example consider the following problem.
The company purchased computer program. Its price is 8 thousand rubles. The developers have limited the duration of its use. In this regard, the head of the ordered write-off of expenses on the program for two years. In the financial statements the amount of the purchase is included in expenditures for the upcoming periods. The cost of the program in tax accounting at a time is allowed to write off the expenses. This resulted in HBP. Conditional deduction according of profit will be larger than the current, the amount of deferred obligations:
ОНО = УНП - ТНП = 8000 * Сн = 1600 rub.
In the financial statements this is reflected in:
In this case, 77/00 acts as a passive balance sheet article on which the accumulated tax amount to be in the upcoming reporting periods to the Supplement. IT is deducted from Sch. 77/00 in the coming cycles. In this case, the computer program already written off for tax accounting and for expenses not affected, and the accounting write-off for part of the program, attributable to the current financial cycle:
- Dt. 20/00 CT 97/00 – part program cost (excluding VAT).
- Дт 19/04 Кт 97/00 - the value of VAT.
In this case, the current tax on profits will be higher than the conditional one, it should be paid in advance, 77/00 you will receive a debit turnover: