To write papers Network: Paper Keywords: accounting income income taxation variance analysis
Abstracts: For a long time, the accounting and tax differences plagued many corporate financial tax officials, in particular, revenue recognition issues. Enterprises in accordance with the Accounting Standards for Business Enterprises reflect actual operating results are not necessarily required by the corporate income tax calculation caliber, tax adjustments matters increased need more tax law expertise and the results of operations of the enterprise is recognized in full accordance with the tax laws caliber, are not in compliance with the quality requirements of accounting information, especially large and medium-sized state-owned enterprises and listed companies. therefore, as far as possible weakening of accounting and tax law treatment differences became very concerned about corporate financial officers of a dream, this article analyzed the income guidelines and corporate income tax on revenue recognition differences.
First, the difference in the revenue recognition criteria
(1) is the accounting income pay more attention to substance over form and prudent accounting information quality requirements, as well as the substantive implementation of the income. (2) the income tax law from a national perspective and pay more attention to the realization of the social value of the income.
"Enterprise Income Tax Law >> and its implementing regulations, not make clear provisions of the income tax revenue recognition criteria but from taxable The relevant provisions of the basic principles of income, the income of the form, content, and recognized income realized time standards can be seen, the income tax revenue and accounting revenue recognition criteria are different now as a reference to analyze the conditions for recognition of revenue from selling goods.
Second, in the range of revenue recognition, accounting income is less than the income of the Income Tax Act including the following situation (1) the accounting income range only involves the flow of economic benefits in the day-to-day activities of the enterprise.
<< Accounting Standards for Enterprises No. 14 - Income >> 2 that income is an enterprise formed in the day-to-day activities, will lead to increase in owner's equity, the inflow and owner of the independent economic interests invested capital. According to this definition, the accounting revenue, including revenue from selling goods, providing labor income and transferring the right to use assets can be seen, the accounting income range inflows, and the formation of non-routine activities, will lead to increase in owner's equity, and the owner of the independent economic interests invested capital inflows be recognized as profits, such as accepting only involved in the day-to-day activities of the enterprise economic benefits donation income, unable to pay payables Accounting Standards "income" is the income on the "narrow" just calculating accounting profit, revenue should be considered from a broader perspective, will have to be taken directly current profits profits into account the range of Basic Accounting Standard 37 also provides accounting profit includes net income minus expenses, profits or losses of the direct count current profits. (2) the scope of the income tax revenue inflow involving the economic interests of all business activities.
<< Enterprises >> Income Tax Act and its implementing regulations, although did not make a clear definition of the income tax revenue, but the provisions of the basic principles of income taxable income in the form of content. << Enterprise Income Tax Law >> pointed out that the implementation of Article 25 of the Ordinance, income tax revenue also includes the deemed sale of goods, transfer of property or labor income. Shows that the range of income in the income tax law is greater than the accounting income, in addition to including the accounting income In addition, also regarded as sales of goods, transfer of property or the provision of labor income and profits. regarded as sales of goods, transfer of property or the provision for bad debt losses in labor income and other income recovered after processing receivables, the formation of permanent differences between accounting income and income tax law income project.
(3) the state for certain conduct of operations to encourage taxpayers to avoid taxation affect the normal operation purposes, the accounting provisions of the tax-free income in the Income Tax Act. Provision of Article 26 of the Income Tax Act: tax-free income, including government bonds interest income; dividends, bonuses and other equity investment income between qualified resident enterprises; institutions established in China, a non-resident companies from resident enterprises obtain actual contact with the agency, places dividends, bonuses and other equity investment income; qualified nonprofit organization's income above the tax-free income is an important part of the taxable income, the only countries in order to achieve certain economic and social objectives, given the economic interests of a specific period of time or a particular project tax incentives to take care of, and during a certain period of time there may restore tax the income range. The above are transferable right to use assets "accounting income" income, so the tax-exempt income items formation of the new enterprise income tax law and accounting standards in temporary differences on the scope of revenue recognition project. Posted in the free papers Download Center http:/ / eng.hi138.com Third, differences in the timing of revenue recognition Accounting Standards basis to accrual to determine income recorded time.
<< Enterprise Income Tax Law Implementation Regulations >> the provisions of Article 9, the corporate taxable income calculation, accrual principle, but this Ordinance and except as otherwise provided in the State Council financial and tax departments. thus can be seen in the timing of revenue recognition, the basic principles of accounting standards and the Income Tax Act so, in most cases, both recognized on income time the provisions of the same, but also there are exceptions. their differences mainly performance on dividends, bonuses and other equity investment gains of confirmation time. long-term equity investment guidelines, regulations, using the cost method Long-term equity investment be invested units declared cash dividends or profits when recognized as investment income in the current period; made for using the equity method of accounting for long-term equity investment, investment enterprises equity investment, the investment unit of realized gains and losses and declares the distribution of cash dividends or profits are in accordance with the investment units shall enjoy or share share recognizes investment income. << Enterprise Income Tax Law Implementation Regulations >> the provisions of Article 17, dividends, bonuses and other equity investment gains to be investors in the general case, the realization of the revenue recognized on the date determined by the profit distribution shows confirmation of dividends, bonuses and other equity investment income on the Income Tax Act has deviated from the principle of accrual, closer to the cash basis, but not a pure cash basis that the tax law does not recognize the equity accounting The method of accounting for investment income.
Fourth, the difference in the amount of revenue recognition
Accounting standards and corporate income tax law to serve a different purpose, namely, to follow different principles, will inevitably lead to differences between accounting income and income tax revenue and income tax accounting income calculated in accordance with the accounting standards and tax laws taxable income results are not necessarily the same enterprises in accounting for differences in accounting income and income tax revenue should be recognized in accordance with accounting standards and income should pay income tax is calculated in accordance with the provisions of the Corporate Income Tax Law, based on accounting income tax adjustments. V.
Conclusion Accounting standards and corporate income tax law is substantially the same as required for the amount of revenue recognition.
Proposed special tax adjustments related party transactions in order to prevent tax evasion, the corporate income tax law. Contrary, if the related party transactions in accordance with the provisions of the independent trade principles The obviously low tax basis, to allow taxpayers to declare and unwarranted tax authorities entitled to statutory the approved tax basis, rather than accounting income, accounting income and income tax will generate taxable income differences.
References:  Ministry of Finance Tax Policy Department, .
2007. New Enterprise Income Tax Law Guidance Beijing, China Financial and Economic Publishing House.  << Regulations for the Implementation of the Enterprise Income Tax Law, Law Press, 2007.  Ministry of Finance: << ASBE 2006 >> Economic Science Press, 2006.
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