How Do I Become an Income Tax Accountant?

Income tax accounting is an accounting theory and method that deals with the differences between accounting income and taxable income. It is a branch of tax accounting and a set of accounting principles, procedures and methods that reflect the recognition, measurement and reporting of corporate income tax. It was born in the field of accounting in the West and first appeared in the United States in the early 20th century. In 1953, the American Institute of Certified Public Accountants announced the adoption of the tax payable method, which started the historical process of income tax accounting. Since then, income tax accounting methods have undergone deferred method, income statement debt method, and balance sheet debt method. After long-term research and practice, they have matured, and China's income tax accounting is still in its infancy.

Income tax accounting

China's income tax system is accompanied by China

The "Interim Regulations on Accounting for Corporate Income Taxes" issued by the Ministry of Finance has been in place for ten years. From the actual situation, the overall situation is good, but compared with the United States, China's income tax accounting has the following problems.

With the continuous development of China's market economy system, it is particularly important to establish and improve the income tax accounting system. It makes good use of income tax accounting to alleviate the contradiction between the two parties in collection and collection, to ensure that the income tax is entered in full and on time, and to promote China's tax collection and management and accounting treatment and international The convergence of conventions is extremely important. Therefore, research and improvement of income tax accounting is an urgent issue.

Extensive research on income tax accounting

Extensive research on income tax accounting theory and methods

In China, although the research on income tax accounting is gradually deepening, it is still inadequate in general. The scope of research is limited to the accounting treatment of business, and the treatment of income tax is not paid enough attention. The publicity of income tax accounting should be strengthened, and academic activities on income tax accounting should be extensively conducted through seminars, newspapers, magazines and other channels, and further discuss the development of income tax accounting with Chinese characteristics that is basically in harmony with international accounting practices. Encourage the accounting department and tax department to discuss the development direction of income tax accounting together to make it consistent with national conditions and easy to operate.

Income tax accounting laws and regulations

Establishing legal norms for corporate income tax accounting

The establishment of corporate income tax accounting must have strict legal regulations. This kind of standard should solve three main problems: first, establish the legal status of corporate income tax accounting, that is, stipulate the implementation of corporate income tax accounting as a tax calculation obligation; second, specify the tax base of taxable income, and The principle of the income tax tax base defines the scope of expenses and expenses, pre-tax deduction items, and the procedures and models for taxable income tax accounting. The third is to clarify legal liabilities for the consequences of non-tax income tax accounting. With these norms, the corporate income tax accounting system can be established, and its work content and work procedures can be established accordingly.

Income tax accounting procedures

Establishing corporate income tax accounting procedures

Corporate income tax accounting should have its own independent system, so as to finally resolve the dependence on corporate financial accounting and strengthen income tax collection and management. According to China's current level of corporate accounting, such conditions are not yet available. In a certain period of time, a transitional form must also be adopted, that is, the establishment of an enterprise income tax accounting system without completely cutting off the connection with corporate financial accounting. Specifically, it can be summarized as follows: Based on corporate financial accounting, based on the difference between financial accounting income and taxable income, the calculation formula of "financial accounting income + difference amount = taxable income amount" is implemented, resulting in independent statutory Income tax accounting statements. The key to this income tax accounting model is to determine the difference between corporate accounting income and taxable income, that is, the cost should be reflected in financial accounting in a fiscal year, but income tax accounting in accordance with tax laws should also be counted as taxable income part. In order to reflect this part of the difference in a timely and accurate manner, in addition to the corporate financial accounting account, a differential total register (or difference general ledger) reflecting the difference amount can be set up to comprehensively reflect each difference amount as a whole. . As for the permanent differences and time differences that have different impacts on corporate accounting, you can set up two detailed registration accounts, the "permanent difference account" and the "temporal difference account," respectively to reflect them. Permanent differences are recorded in the "permanent difference account" according to the amount of the expenditure; the time difference exists in the form of the difference between the standard required by the tax law and the actual number of financial accounting books, and this difference is recorded in the "time difference account". The time of each difference is recorded in the account and synchronized with the time of other accounts recorded in financial accounting. After the conditions in all aspects are mature in the future, an independent corporate income tax accounting will be established.

Income tax accounting norm coordination

Urgent Need for Coordination Between Financial Accounting Rules

According to the financial system, a company's confiscated finances, various late fees paid, fines, liquidated damages, compensation, sponsorship, donation expenses, various payments other than those required by law, etc., cannot be classified as costs, and the accounting system It is stipulated that all the above expenditures can be listed in the relevant profit and loss accounts, and the tax law also stipulates their deduction standards. Even if the company calculates in strict accordance with the accounting system and includes the above expenditures in the relevant profit and loss accounts, it is difficult to say that it has not violated the financial system despite not violating tax laws. If the relevant auditing department believes that the company violates the financial system and imposes a fine of five times on the violation of financial regulations, it is difficult for the company to accept it. There is an urgent need to further straighten out the financial and accounting standards. In view of the relatively complete interim regulations on corporate income tax and the establishment of corporate income tax accounting, it is necessary to cancel the financial regulations of individual banks. This will not only reduce the contradiction between the relevant national laws and regulations, but also help change the subordinate position of accounting to finance and be in line with international accounting practices.

Economic regulations for income tax accounting

Accounting reform needs to be a certain advance, but it also brings some problems. For example, according to the "Provisional Provisions on Penalties for Violating Financial Regulations" issued by the State Council in 1986 and its detailed implementation rules, enterprises have listed costs and embezzled production The use of non-productive funds for non-productive purposes is a violation of fiscal regulations and a fine of five times or less. And the current income tax accounting regulations, the accounting profits of enterprises and tax profits can be inconsistent, according to the actual cost of the enterprise expenses. As for the state to ensure water resources, according to the provisions of the temporary regulations on corporate income tax, corporate accounting profits can be adjusted to tax profits. The problem of misappropriation of funds is also inconsistent with the provisions of the current fund management system of "corporate funds can be arranged and used in a unified manner". In actual work, enterprises feel incomprehensible and the relevant audit departments have no alternative. It is recommended that relevant national departments conduct a careful cleanup of economic regulations that are not adapted to accounting reforms. Outdated and unsuitable ones should be revised and improved as soon as possible, and those that cannot be modified and improved for a while should also be clearly dealt with in order to reduce conflicts between economic regulations and enhance Unification, avoid randomness in law enforcement, and effectively protect the legitimate rights and interests of enterprises.

Staffing of income tax accountants

The inconsistency between corporate accounting profits and tax profits is manifested in many aspects, such as depreciation expenses, wages and three expenses, investment income, pilot income, interest expenses, fines, donation expenses, state subsidies, loss compensation, tax deductions, etc. Wait, the calculation is a lot of work. At present, because some enterprises are not equipped with full-time or part-time tax accountants, the time and energy of the tax administrators are also limited. However, the tax profits of some enterprises are not real, leading to the loss of national tax sources. Therefore, the state must clearly stipulate that enterprises must be equipped with full-time or part-time tax accountants. On the basis of financial accounting, separate accounts reflect the realization and payment of corporate taxes. In this way, it will not only help the country strengthen tax collection and management, reduce the loss of tax sources, but also help enterprises attach importance to the study of tax planning, and strengthen tax accounting and management.

Strengthening the concept of income tax accounting

Income tax is an important expense for an enterprise, and net income is the main measure of enterprise success. And how to save expenses and increase income is an important decision facing enterprises today. Income tax has an impact on the organizational form, financial arrangements, and transaction methods of an enterprise. When making decisions, an enterprise cannot ignore the important factor of income tax. Strict income tax accounting can ensure that companies make correct operating decisions.

At present, income tax accounting is a weak link in China's accounting and is still in its infancy. Under the condition that the accounting system and the income tax system are relatively independent, the differences between accounting profits and tax income are increasing. Drawing on and absorbing foreign advanced experience, we will establish a set of income tax accounting theories that are suitable for China's national conditions, and try to reduce the gap between China and other western developed countries and international accounting standards as much as possible, so that China's income tax accounting is continuously improved and developed.