All enterprises and organizations in our country (including foreign ones that receive income in Russia) that have any financial revenue and operate according to the standards of the general taxation system are required to pay income tax to the regional and federal budget of the Russian Federation. To calculate and correctly register this segment of taxation, there are accounting entries for income tax.

Income tax - postings. Basic Concepts

In accordance with generally accepted standards, profit is calculated as income minus expenses. This taxable income is, by its very nature, subject to taxation. Tax profit is calculated in accordance with the provisions of the Tax Code of the Russian Federation and is determined on the basis of primary documents, as well as accounting results. Accounting entries for income tax are reflected in the database, which contains all changes in the status of accounting objects. The main account assignments (accounting entries) in this taxation segment are: “income tax transferred - posting Dt99 Kt68” and “payment of income tax - posting Dt68 Kt51”.

The organization's profit tax has been accrued - posting Dt68 Kt51. The payment order contains the following data: the amount of 59,986 rubles was transferred to the federal budget, the amount of 339,924 rubles was transferred to the local regional budget.

For income tax, postings DT99 and KT68 accounts are used in every organization that uses the “income minus expenses” tax system.

Profit is the difference between a business's income and its expenses. If a commercial organization works “in plus”, i.e. makes a profit, she must pay tax. This article will tell you how income tax is calculated, what entries to use and how to avoid typical accounting mistakes.

“Profitable” tax belongs to the federal group of taxes. It was introduced by the fiscal service to improve control over the activities and revenue of commercial enterprises.

Who pays

Profit tax is required to be paid by:

• Russian commercial organizations;
• foreign commercial organizations that have their representative offices on the territory of the Russian Federation, as well as receiving income from sources located on Russian territory.

The following are exempt from income tax obligations:

• organizations participating in the Skolkovo project;
• taxpayers who own gambling businesses;
• persons applying one of the special regimes for paying taxes;
• persons paying agricultural taxes.

How much to pay

The lion's share of Russian companies deducts 20% of the resulting profit. But there are a number of organizations that apply other rates:

1. An income tax of 13% is paid by domestic firms that receive revenue in the form of dividends.
2. A rate of 15% is applied to foreign organizations that receive revenue in the form of dividends.

Video - Calculation and payment of corporate income tax

Recognition of expenses and income: two legal ways

The law allows businesses to recognize income and expenses in two ways:

1. cash;
2. accrual.

The first method assumes that the enterprise records the fact of income in its fiscal reports when:

• the cashier accepted the funds;
• there was a transfer to the company's bank account.

Expenses are recognized when payments are made from the cash register, property is disposed of, or money is written off from the company's bank account. This method can only be used by small organizations whose revenue over the last four months does not exceed one million rubles.

Companies using the second method, accrual, record expenses and income when those transactions occur. For example, when purchasing raw materials, tax documents will reflect the date of their transfer to production.

Income

Let's consider the features of calculating profitability for different categories of commercial organizations.

Profit = Income – Production costs

Production expenses are expenses that are directly related to the production of a product or service. Such costs include general production costs, purchase of materials, and labor costs.

Profit = Income – Costs of a representative office of a foreign company in the Russian Federation.

On a note! Organizations that are not included in any of the previous groups are required to deduct tax on all income received in the Russian Federation.

The income that Russian firms receive is divided into two categories:

1. Income that a company receives by selling goods or services.
2. Income not related to the sale of goods or services (non-sales). This category includes revenue from the sale or purchase of foreign currency; dividends received from third-party legal entities; donated property; interest on loan; penalty for failure to comply with the terms of the contract by a partner or client.

On a note! When calculating tax, do not take into account amounts paid in excise taxes and VAT. If the money was accepted by the enterprise in foreign currency, this amount should be converted into rubles. It is necessary to calculate at the Central Bank exchange rate in effect at the time of revenue recognition.

Expenses

When calculating the “profitable” tax, you should take into account only justified and documented costs of the company. Spending by Russian companies is divided into two categories:

• costs associated with the manufacture of products and their sales;
• other expenses (for example, negative exchange rate differences).

There are several types of expenses that are never included in income tax calculations. These include repayment of loans, contributions to the authorized capital, payment of dividends, etc.

Labor costs, material costs, and depreciation are considered direct costs. Each month, firms must include them in the price of finished goods and in the cost of unfinished goods.

The second group of expenses is indirect expenses. These include renting premises, utilities, communications. In tax reporting, such expenses must appear in the period to which they relate. Indirect costs cannot be directly included in the cost of the final product.

Advance payments

All foreign and domestic commercial organizations in Russia pay income tax not in one amount, but in parts. Such regular contributions to the country's budget are called advance payments. Find out more about them in.

Table 1. Existing types of advances

Advance type	Payment
Quarterly	They pay for commercial institutions whose sales income for one previous year does not exceed fifteen million rubles.
Monthly, calculated from real profits	Organizations switch to this tax payment schedule voluntarily. To pay tax monthly, you need to submit an application to the fiscal department. But it is important to make the transition before the reporting year. So, in order to switch to monthly payment from 2018, the application must be submitted before December 31, 2017.
Monthly, with additional payment of the balance every three months	This schedule is used by those commercial companies that the state does not give the right to use the first option, and they have not switched to the second on their own.

On a note! Newly incorporated business companies pay advances every quarter. If, based on the results of three reporting months, the income of the new organization exceeds the limit established by the state, they begin to pay taxes every month. But, if the newly formed company initially chose the second option, it will pay advances monthly regardless of the amount of revenue received.

Deadlines for making advances

Contributions must be made at the end of the reporting period. With a monthly payment schedule, advances must be received by the tax department by the twenty-eighth day of the month following the reporting month. The quarterly schedule assumes that money must be transferred by the twenty-eighth day of the month following the reporting month. For example, the first quarterly payment for 2018 (for January, February and March) must be received by April twenty-eighth, 2018.

Organizations using a combined tax payment method must transfer funds every month before the twenty-eighth day. And the balance for the quarter must be paid before the twenty-eighth day of the month following the previous reporting quarter.

On a note! If the payment deadline falls on a Saturday, Sunday or holiday, the advance must be paid on the first day the tax office is open.

Penalties for late payment

A commercial organization cannot be fined for late payment of advances. But for every day of delay, tax authorities charge a penalty.

Postings, examples of tax calculation

In accounting, to reflect the fact of payment of any tax, there is a separate account - 68. Sub-accounts for each individual tax are attached to it - “Personal Income Tax”, “Property Tax”, etc.

The withholding of both the tax itself and advances is reflected as follows: D99 K68. When calculating, the figures are taken from the first section of the income tax return. The amount is calculated on an increasing basis. Those. the indicator will be calculated not from the profit received in each specific month, but by subtracting the amount of tax already paid from the tax on revenue received since the beginning of the year.

Accountants indicate the transfer of income tax to the budget using another entry: D68 K51.

Let's give an example, How to reflect tax payments that occur every three months. OJSC Victoria made a fiscal contribution in the amount of 150,000 rubles for the first quarter, and for six months the amount of the accrued advance amounted to 450,000 rubles. In the third time period - 1,000,000 rubles, and at the end of the year, the amount of advance contributions should be equal to 2,000,000 rubles. These numbers must be entered in the income tax return, line 180. The postings should look like this:

Income tax entries

If there was no profit

It is not uncommon for organizations to operate at a loss. At the same time, the advance payment for the current period is less than for the previous one. The accountant must correctly reflect this situation in the reporting documents.

Example. For the second quarter the advance amounted to 200,000 rubles, and for the third quarter it was less - 150,000 rubles. The wiring should look like this:

Postings when the organization was operating at a loss

Differences

Indicators in fiscal and accounting reports do not always coincide. Thus, the profit appearing in the tax return is often not equal to the amount of net profit obtained according to the accounting documents. This means that the tax that is payable and the tax according to accounting documents can have completely different values. To make them coincide, the state approved a rule called PBU 18/02.

Not all organizations are required to apply this rule. Credit and government institutions are exempt from it. Also, this rule is not applied by organizations working on simplified financial and accounting statements.

For those who use the rule

Differences between fiscal and accounting revenues can be temporary or permanent. The latter happens if costs or income are indicated in only one accounting - fiscal or accounting. This happens in the following situations:

1. Costs or income cannot be included in the calculation of the base from which “profitable” tax is paid, but must be used in preparing financial statements.
2. Costs or income appear only during taxation, but these amounts are not included in the accounting reports.

Constant expenses that are recorded only in one account and missed in another are called PNO. And the income due to which differences in the time group are obtained are called PNA.

PNO

The group of permanent non-profits includes, for example, expenses for a corporate event or the cost of property that was received free of charge.

The size of the PNO is calculated as follows:

PNO = amount of costs that are included only in tax reporting * tax rate (20%)

PNO = the amount of costs that are included only in the financial statements * tax rate (20%).

PNA

Permanent tax assets include, for example, state duty that was paid for real estate that was not acquired for subsequent resale.

This indicator can be calculated using the formulas:

PNA = the amount of costs that appear only in fiscal reporting * 20% (tax rate)

PNO = the amount of costs that appear only in accounting documents * 20%.

Permanent differences: postings and reporting

BUT of the permanent group is recorded in the debit account 99. In this case, the figure 68 is entered for the loan.

Constant BUTs must be written in reverse: the debit to the account is 68, and the credit to the account is 99.

On a note! Permanent differences in accounting are entered strictly in the month of their occurrence. Therefore, they should not be included in the balance sheet.

Let's give an example. OJSC “Snegovik” accepted free financial assistance in the amount of 200,000 rubles.

The accountant should reflect this transaction as follows:

D 51 K 9-1-1 200,000 rubles.

Money accepted free of charge is recognized among other income of the joint-stock company.

This operation is reflected in accounting documents, but does not need to be included in tax reporting. Since money received free of charge is not subject to taxation. Therefore it is necessary to do the wiring:

D 68 K 99 PNA 40,000 rubles (200,000 * 20%)

Temporary differences

This type of difference occurs when costs or revenues are recorded in fiscal and accounting reports at different time periods. They can be deductible or taxable.

If income is recorded in accounting documents before fiscal ones, it is considered that income tax is deferred. In this case, the term IT is used.

To calculate the value of IT, you need to multiply the difference between fiscal and accounting net profit by twenty percent (the “profitable” tax rate). If we are talking about income, the difference between accounting and fiscal net profit is taken into account, which must be multiplied by the current tax rate.

As expenses (income) are repaid, IT will become less and less.

IT must be recorded in account 77, which is called “Deferred tax liabilities”.

IT is the amount of deferred tax, which in future reporting will entail a reduction in “profitable” tax. To find out what it is equal to, you need to multiply the amount of the temporary difference and the tax rate (currently 20%).

This part of the deferred “profitable” tax appears in accounting in account O9.

Common mistakes when calculating taxes

In order not to incur claims from tax authorities during an audit, you need to correctly take into account income and expenses, calculate profits and charge taxes. Here are some of the most common taxpayer mistakes:

1. Debt on loans that have already expired is counted as income. The accountant must recognize the debt as income in the period in which the claim period expired. In tax accounting, an overdue creditor is also considered income. If there is a delay, the responsible person is obliged to write an accounting statement, add this amount to income, and calculate income tax from it.
2. If the organization receives income from loans issued to other persons, it does not matter exactly when the actual receipt of interest occurred and what terms are specified in the agreement. The accountant must calculate income tax in each reporting period (month, quarter) evenly.
3. In orders for issuing bonuses, it is better not to indicate that the money is not given for labor merit. If a company plans to give bonuses to employees due to holidays, you need to find a good reason for this. Bonuses should be linked to employee performance achievements. Also, the possibility and procedure for paying bonuses must be specified in individual or collective labor contracts. Only under such conditions can bonuses be legally considered expenses.
4. If you plan to pay employees going on vacation additional financial assistance, in all acts, call this a regular additional payment to vacation pay. These amounts can be included in staff wage costs if several conditions are met. Firstly, additional payments to vacation pay must be specified in employment contracts (individual, collective). Secondly, the amount of payments directly depends on the employee’s compliance with the organization’s requirements and the amount of the employee’s salary. The amount of additional payment can be directly proportional to the salary, reduced in case of violations of discipline, etc.

If companies are on the general taxation system, then they are required to calculate and pay income tax to the budget within the established time limits. At the same time, this is reflected not only in tax accounting, but also in accounting. In accounting, it is also necessary to create a transaction for calculating income tax. In the article we will look at how income tax is calculated and what transactions are made.

Accounts used when calculating income tax

When calculating income tax in accounting, the following accounts are used:

1. Account 09 – it reflects deferred tax assets. This account is used if there is a difference between profit in accounting and tax accounting.
2. Account 51 – reflects the amount of tax transferred to the budget.
3. Account 68 – it reflects calculations of accrued and paid income tax to the budget. Accounting in this account is carried out separately for federal and regional taxes.
4. Account 77 – reflects deferred tax liabilities. This account is used in cases where it is necessary to take into account the difference between profit in accounting and tax accounting.
5. Account 99 – used to calculate income tax.

The entries for calculating income tax will be as follows:

Business transaction	Debit	Credit
Advance payment for income tax (every month or every quarter)	99	68
Accrual of a tax asset when profit in tax accounting exceeds profit in accounting	09
Accrual of tax liability when profit in accounting exceeds profit in tax accounting	68	77
Accrual of income tax for the reporting period (if it is more than advance payments at the end of the year)	99	68
Adjustment of income tax at the end of the year (at the end of the year, profit is less than advance payments)	99 (reversible)	68 (reversible)

When transferring income tax to the budget, the postings will be as follows:

D68 K51 – advance payment of income tax transferred to the budget;

D68 K51 – the final amount of income tax at the end of the year is transferred to the budget.

Postings when calculating income tax by a tax agent

In certain cases established by the Tax Code of the Russian Federation, a company can act as a tax agent for income tax. In this case, the tax agent withholds income tax from the company that is the source of its formation. An example is the payment of dividends to a Russian company, or a company that does not have a representative office in the Russian Federation, or when rent is transferred to a foreign company.

Business transaction	Debit	Credit
Dividends accrued (foreign company)	84	75.2
Calculation of income tax on dividends (foreign company)	75.2	68
Dividends were transferred to the founder - to a foreign company	75	52
Transfer of income tax by a tax agent	68	51
Calculation of rent to the supplier (foreign company)	20	60
Calculation of income tax for the lessor	60	68
Transfer of income tax to the budget by a tax agent	68	51
Transfer of rent to the supplier (foreign company)	60	52

Calculation of income tax on loans

If a company acts as a tax agent, then it has the obligation to calculate and pay income tax on interest calculated on loans from foreign companies that do not have representative offices in Russia.

Business transaction	Debit	Credit
Receipt of a loan from a foreign company	52	66 (67)
Accrual of interest on borrowed funds	91.2	66 (67)
Withholding of income tax by the tax agent on interest on loans	66 (67)	68
Transfer of income tax by the tax agent	68	51
Transfer of loan interest	66 (67)	52
Repayment of a loan to a foreign company	66 (67)	52

Calculation of income tax in a budget organization

Regardless of the legal status of the company and the procedure for its creation, it is required to pay income tax. Thus, even budget organizations are required to calculate and remit income tax. In this case, both commercial and non-operating expenses are included in the tax base.

Important! When keeping records in a budgetary organization, companies are required to follow a certain rule: accounting for income and expenses is kept separately for commercial activities and upon receipt of targeted funding. Otherwise, the latter will be included in taxable income. The postings in this case will be as follows:

D 2.401.10.130 K2.303.03.730 – tax is charged on revenue received from these services

D 2.401.01.172 K2.303.03.730 – tax accrued on proceeds received from the sale of goods

D 2.303.03.830 K2.201.11.610 – tax transferred to the budget

Income tax when returning goods to the supplier

Sometimes in the process of economic activity a situation arises in which a product is accepted from the seller and it arrives. After some time, the buyer may decide to return the product back, for example, if it is not in demand and such a condition is provided for in the contract.

Important! One of the features of the return operation is that the implementation is actually carried out by both one and the other party. In this case, the buyer issues a reverse sale, and all taxes are charged.

The buyer reflects the reverse sale in accounting, so the income tax base includes the proceeds and the write-off of the purchase price, which are involved in determining the tax. Taxable profit in this case should be zero, since the sale price will be equal to the residual value and VAT.

Business transaction	Debit	Credit
Receipt of goods
Purchasing goods from a supplier	41	60
VAT allocated on purchased goods	19	60
Input VAT credit	68	19
Purchase returns
Reflection of the return of goods in the form of sales	62	90
Write-off of the purchase price of goods	90	41
VAT charge on returns	90	68

Example of income tax calculation

The indicators of Continent LLC at the end of the year were as follows:

The company's income is 35 million rubles;

The company's expenses are 25 million rubles.

When calculating income tax, we determine the taxable base:

35 million – 25 million = 10 million rubles

The income tax in this case will be:

10 million x 20% = 2,000,000 rubles.

Oleg Good, Head of the Corporate Income Tax Division of the Tax and Customs Policy Department of the Russian Ministry of Finance.

Organizations must calculate and transfer advance payments and income tax to the budget for each reporting (tax) period if they apply the general regime. At the same time, the accrual and payment of taxes must be reflected in accounting, like any other fact of economic life. This must be done taking into account the requirements of PBU 18/02. This is the only way to eliminate the discrepancies that exist in accounting and tax accounting. How to correctly apply PBU 18/02 will be discussed in this recommendation.

By the way, only certain categories of income tax payers may not comply with the requirements of PBU 18/02, namely:

• credit organizations, state and municipal institutions;
• organizations that have the right to use simplified accounting methods, including simplified accounting (financial) reporting.

All this follows from paragraphs 1 and 2 of PBU 18/02, paragraphs 1 and 2 of Article 286, paragraph 1 of Article 289 of the Tax Code of the Russian Federation.

How to calculate income tax in accounting

Organize accounting for accrued and paid amounts of income tax, as well as advance payments on it, in account 68. To do this, open a separate sub-account “Calculations for income tax.”

Those who do not apply PBU 18/02 have the right to reflect in accounting the tax calculated in the declaration. Since the source of tax payment is profit, it must be calculated in correspondence with the debit of account 99:

– income tax (advance payment) is charged for the tax (reporting) period.

This is established by the Instructions for the chart of accounts (accounts 68 and 99).

If you are required to apply PBU 18/02, then you cannot simply take and reflect in accounting the income tax recorded in the declaration. You will receive this value, but only after you have summed up the values ​​of the following indicators for the period on account 68:

• conditional income tax expense calculated on the basis of accounting (balance sheet) profit;
• conditional profit tax income, which is calculated from the accounting (balance sheet) loss;
• permanent tax assets or liabilities from permanent differences, if any;
• deferred tax assets or liabilities from temporary differences, if any.

The thing is that due to differences in the composition and procedure for recognizing income and expenses, the amount of accounting (balance sheet) and taxable profit may not coincide. This means that simply multiplying the profit received by the tax rate is not enough. This will not show in accounting the amount of the organization's real tax liabilities.

Only by observing the requirements of PBU 18/02 and reflecting the differences that arise, can the real amount of tax be determined in accounting. As a result, before the tax is paid, in the subaccount 68 “Income Tax Calculations” there should be either a credit balance (tax payable) or a completely zero balance (when there is no need to pay tax according to the declaration). Other options are possible only if the organization has an overpayment or arrears of income taxes.

Now let's talk about everything in order. First, let's define the differences that arise between accounting and tax accounting. And how to reflect the tax assets and liabilities corresponding to these differences in accounting.

How to determine permanent differences and reflect the corresponding tax assets and liabilities in accounting

A permanent difference (PD) arises every time any income or expense is taken into account in whole or in part only in accounting or only for taxation. Here's an example of when this happens:

• In accounting, expenses are taken into account in full, but in tax accounting only in the established amount. This applies, for example, to interest on loans and borrowings and other expenses normalized when calculating income tax;
• costs associated with the transfer of property (goods, works, services) for free use are recognized only in accounting;
• the loss is carried forward to the future, but after a certain period (10 years) it can no longer be taken into account for tax purposes.

This is stated in paragraph 4 of PBU 18/02.

In the same reporting period in which the permanent differences arise, record the corresponding tax assets or liabilities. That is, those amounts by which the tax in accounting will be reduced or increased. To account for permanent tax liabilities and assets, open subaccounts of the same name for account 99.

The reason for the constant differences			Postings
Income is taken into account only for tax purposes	Permanent tax liabilities (PNO)	Increase the tax amount	Debit 99 subaccount “Fixed tax liabilities” Credit – a permanent tax liability is reflected
Expenses that are not recognized for tax purposes
Income is reflected only in accounting	Permanent tax assets (PTA)	Reduce tax amount	Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “Permanent tax assets” – a permanent tax asset is reflected
Expenses are recognized only for tax purposes

Determine the size of the PNA and PNA using the formula:

A diagram of actions will help you quickly determine PNO and PNA: how to determine permanent differences in accounting and what postings to make.

Continuous tax liabilities and assets are not satisfied during the year. They can be written off from account 99 only as part of net profit or loss when reforming the balance sheet. At the same time, attribute them to account 84 “Retained earnings (uncovered loss).”

This procedure is provided for in paragraph 7 of PBU 18/02 and the Instructions for the chart of accounts (accounts 68, 84 and 99)

Attention: There is an opinion that all expenses that are not taken into account when calculating taxes on profits should be reflected in accounting as part of others. This is not true. Officials will be fined for mistakes. If, in the end, taxes are also underestimated, then the organization itself will be punished, and the amount of fines will increase. But there is a way out.

If, during an audit, a similar error from previous years is discovered, due to which reporting and taxes are distorted, then it will not be possible to avoid liability. You will mitigate the consequences if you recalculate your taxes yourself, provide the correct information, and pay penalties.

As for the mistakes of this year, everything can be corrected. If you qualify expenses correctly, you will successfully generate reports and calculate taxes. Cancel erroneous entries.

Remember, expenses are taken into account depending on their purpose and the conditions under which they are incurred. So, for example, in accounting, costs are classified not only as other, but also as expenses for ordinary activities (clause 4 of PBU 10/99).

The Alpha organization pays compensation to an employee when his car is used for business purposes. Compensation is 5000 rubles. per month. But when calculating income tax, only 1,200 rubles are taken into account. (Resolution of the Government of the Russian Federation of February 8, 2002 No. 92). Error! Debit 20 Credit 73 – 1200 rub. – compensation was accrued to the employee for a personal car within the norms; Debit 91-2 Credit 73 – 3800 rub. – compensation was accrued to an employee for a personal car in excess of the norm. Correctly like this: Debit 20 (26, 44…) Credit 73 – 5000 rub. – compensation was accrued to the employee for a personal car. Here's how to fix the error: Debit 91-2 Credit 73 – 3800 rub. – compensation to an employee for a personal car in excess of the norm was reversed; Debit 20 Credit 73 – 3800 rub. – additional compensation was accrued to the employee for a personal car.

How to determine temporary differences and reflect the corresponding tax assets and liabilities in accounting

A temporary difference arises if any income or expense is taken into account in accounting in one period, and when taxed in another. There are two types of temporary differences - deductible (DVR) and taxable (TVR).

Deductible Temporary Difference (DTD) occurs, for example, in the following situations:

• when I calculate depreciation differently in accounting and tax accounting. Alternatively, in tax accounting it is calculated linearly, and in accounting – using the reducing balance method;
• if there is a loss carried forward, which will be taken into account for taxation before the expiration of 10 years;
• if expenses are taken into account differently in the cost of production in accounting and taxation.

Taxable temporary difference (TDT) is formed, in particular, as a result of:

• application of different methods of depreciation in accounting and tax accounting. For example, in tax accounting it is calculated linearly, and in accounting – using the reducing balance method;
• when the cash method is used in tax accounting, and in accounting they reflect income and expenses based on time certainty.

All this follows from paragraphs 8–12 of PBU 18/02.

In the same reporting period in which the temporary differences arose or were settled (in whole or in part), reflect the deferred tax assets or liabilities. That is, those amounts by which tax will be reduced or increased in accounting in subsequent reporting periods and which are not taken into account in the current one.

To account for deferred tax assets, use account 09, and for liabilities - account 77. In subsequent periods, as income and expenses converge in accounting and tax accounting, pay off deferred tax liabilities and assets.

Here's how to record the creation and settlement of deferred tax assets and liabilities:

Reason for temporary differences	Type of tax assets and liabilities	How does it affect income tax in accounting?	Postings
Income that is not reflected in the accounting of the current reporting period	Deferred tax assets (DTA)	Reduce the amount of tax for future reporting periods. The current period tax is increased	– a deferred tax asset is reflected; – the deferred tax asset is repaid (in whole or in part)
Expenses that are not recognized for taxation in the current reporting period
Income that is not taken into account for taxation in the current reporting period	Deferred tax liabilities (DTL)	Increase the tax amount for future reporting periods. The current period tax is reduced	– deferred tax liability is reflected; Debit 77 Credit 68 subaccount “Calculations for income tax” – the deferred tax liability is repaid (in whole or in part)
Expenses that are not reflected in the accounting of the current reporting period

Determine the size of SHE and IT using the formula:

This procedure is provided for in paragraphs 8–12, 14 and 15 of PBU 18/02.

A diagram of actions will help you quickly determine IT and SHE: how to determine temporary differences in accounting and what entries to make.

How to reflect in accounting

Calculate the conditional consumption in accordance with paragraph 20 of PBU 18/02. That is, according to the formula:

Reflect the conditional income tax expense on the subaccount of the same name in account 99:

Debit 99 subaccount “Conditional income tax expense” Credit 68 subaccount “Calculations for income tax”
– a contingent income tax expense has been accrued for the reporting (tax) period.

An example of reflecting the accrual and payment of income tax in accounting. The organization applies PBU 18/02. Based on the results of the period, profit was determined in accounting and tax accounting

Based on the results of work for the first quarter, according to accounting data, Alpha LLC received a profit of 1,500,000 rubles. The organization pays income tax quarterly. The applicable income tax rate is 20 percent.

Turnovers for the first quarter in account 68 subaccount “Calculations for income tax” amounted to:

Index	Sum	Debit	Credit
Contingent income tax expense	300,000 rub. (RUB 1,500,000 × 20%)	99	68
PNO	16,000 rub.	99	68
IT arose	2000 rub.	68	77
IT is extinguished	1000 rub.	77	68
SHE emerged	8000 rub.	09	68
ONA extinguished	2000 rub.	68	09

The amount of current income tax generated on account 68 subaccount “Calculations for income tax” was:
300,000 rub. + 16,000 rub. – (2000 rub. – 1000 rub.) + (8000 rub. – 2000 rub.) = 321,000 rub.

According to tax accounting data, the amount of income tax for the first quarter also amounted to 321,000 rubles.

The accountant reflected the payment of income tax with the following entries:

– 48,150 rub. – income tax for the first quarter was transferred to the federal budget;

Debit 68 subaccount “Calculations for income tax” Credit 51
– 272,850 rub. – the income tax for the first quarter was transferred to the regional budget.

How to reflect conditional income tax income in accounting

Even if the organization, according to accounting data, incurred a loss in the reporting (tax) period, record income tax on this amount. This is called deemed income for income taxes. This indicator is the product of the current income tax rate and the amount of loss reflected in accounting. That is, it should be calculated like this:

This procedure is provided for in paragraph 20 of PBU 18/02.

Reflect the conditional profit tax income in the subaccount of the same name in account 99:

Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “Conditional income for income tax”
– accrued conditional profit tax income for the reporting (tax) period.

In tax accounting, nothing is considered from the loss. So, if there are more expenses than income, there is no profit, then there is nothing to calculate the tax from. The basis for calculating income tax is zero. However, in future periods, the loss may reduce taxable profit (clause 8 of Article 274, clause 1 of Article 283 of the Tax Code of the Russian Federation).

The accounting rules do not provide for similar norms. Consequently, a deductible temporary difference arises. Therefore, after the conditional income for income tax is determined in accounting and it is possible to accurately determine the size of the income tax, reflect it in the accounting (clause 14 of PBU 18/02).

In the period in which the tax loss was determined, make an entry in accounting:

Debit 09 Credit 68 subaccount “Calculations for income tax”
– a deferred tax asset is reflected from the tax loss, which will be repaid in the following reporting (tax) periods.

As the loss is carried forward, repay the deferred tax asset:

Debit 68 subaccount “Calculations for income tax” Credit 09
– the deferred tax asset is written off from the settled loss.

This procedure follows from the provisions of paragraph 14 of PBU 18/02, Article 283 of the Tax Code of the Russian Federation, Instructions for the chart of accounts and letter of the Ministry of Finance of Russia dated July 14, 2003 No. 16-00-14/219.

An example of how conditional income tax income and a deferred tax asset are reflected in accounting. At the end of the tax period, the organization suffered a loss in both tax and accounting

At the end of 2016, Alpha LLC received a loss:

• according to accounting data - 100,000 rubles;
• according to tax accounting data - 100,000 rubles.

At the end of the first quarter of 2017, Alpha’s profit was:

• according to accounting data - 200,000 rubles;
• according to tax records - 200,000 rubles.

At the end of the first half of 2017, Alpha’s profit was:

• according to accounting data - 50,000 rubles;
• according to tax records - 50,000 rubles.

The following entries were made in the organization's accounting.

Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “Conditional income for income tax”
20,000 rub. (RUB 100,000 × 20%) – the amount of conditional income has been accrued;

Debit 09 Credit 68 subaccount “Calculations for income tax”
20,000 rub. (RUB 100,000 × 20%) – a deferred tax asset is reflected from the tax loss.

– 40,000 rub. (RUB 200,000 × 20%) – a conditional income tax was accrued for the first quarter;

Debit 68 subaccount “Calculations for income tax” Credit 09
– 20,000 rub. (RUB 100,000 × 20%) – the deferred tax asset is repaid from the loss.

Debit 99 subaccount “Conditional income tax expense (income)” Credit 68 subaccount “Calculations for income tax”
– 40,000 rub. – accrued income tax (conditional expense) for the first quarter was reversed;

Debit 68 subaccount “Calculations for income tax” Credit 09
– 20,000 rub. – the tax asset was restored from the loss reflected in the first quarter.

The 2016 loss reduces the taxable profit for the first half of 2017 by no more than 50 percent (clause 2.1 of Article 283 of the Tax Code of the Russian Federation).

Debit 99 subaccount “Conditional income tax expense” Credit 68 subaccount “Calculations for income tax”
– 10,000 rub. (RUB 50,000 × 20%) – a conditional profit tax has been accrued for the six months;

Debit 68 subaccount “Calculations for income tax” Credit 09
– 5000 rub. (RUB 50,000: 2 × 20%) – the deferred tax asset is repaid from the transferred tax loss, which reduces the taxable profit for the half-year.

The amount of income tax reflected in the declaration for the first half of 2017 is 5,000 rubles. The credit balance on account 68 subaccount “Calculations for income tax” is equal to:
10,000 rub. – 5000 rub. = 5000 rub.

Current income tax is reflected correctly. The reporting period is closed correctly.

An example of how a conditional income tax expense is reflected in accounting when closing a reporting period. In the accounting of the organization, profit is determined, and in tax accounting, loss

Alpha LLC calculates income tax on a monthly basis based on actual profits. Income and expenses in tax accounting are determined using the cash method. The organization applies PBU 18/02. Alpha is engaged in the provision of information services and enjoys VAT exemption.

In January, Alpha sold services worth RUB 1,000,000.

The organization’s personnel received a salary in the amount of 600,000 rubles. The amount of contributions for compulsory pension (social, medical) insurance and insurance against accidents and occupational diseases from accrued salaries amounted to 157,200 rubles.

As of January 31, sales proceeds have not been paid, staff salaries have not been issued, and mandatory insurance contributions have not been transferred to the budget.

On January 15, Alfa manager A.S. Kondratiev submitted an advance report on travel expenses in the amount of 1,200 rubles. On the same day, these expenses were fully reimbursed to him. Due to the excess of the standard daily allowance in tax accounting, travel expenses were reflected in the amount of 600 rubles.

In January, Alpha had no other operations. The following entries were made in the organization's accounting:

Debit 62 Credit 90-1
– 1,000,000 rub. – revenue from the sale of information services is reflected;

Debit 68 subaccount “Calculations for income tax” Credit 77
– 200,000 rub. (RUB 1,000,000 × 20%) – a deferred tax liability is reflected from the difference between the revenue reflected in accounting and tax accounting;

Debit 26 Credit 70
– 600,000 rub. – wages accrued for January;

Debit 09 Credit 68 subaccount “Calculations for income tax”
– 120,000 rub. (RUB 600,000 × 20%) – a deferred tax asset is reflected from the difference between the salary reflected in accounting and tax accounting;

Debit 26 Credit 69
– 157,200 rub. – compulsory insurance contributions have been calculated from wages for January;

Debit 09 Credit 68 subaccount “Calculations for income tax”
– 31,440 rub. (RUB 157,200 × 20%) – a deferred tax asset is reflected from the difference between the amount of taxes (contributions) reflected in accounting and tax accounting;

Debit 26 Credit 71
– 1200 rub. – travel expenses written off;

– 120 rub. ((1200 rub. – 600 rub.) × 20%) – reflects a permanent tax liability for travel expenses reflected in accounting and tax accounting;

Debit 90-2 Credit 26
– 758,400 rub. (RUB 600,000 + RUB 157,200 + RUB 1,200) – the cost of services sold is written off;

Debit 90-9 Credit 99 subaccount “Profit (loss) before tax”
– 241,600 rub. (RUB 1,000,000 – RUB 758,400) – profit for January is reflected;

Debit 99 subaccount “Conditional income tax expense” Credit 68 subaccount “Calculations for income tax”
– 48,320 rub. (RUB 241,600 × 20%) – the amount of conditional income tax expense has been accrued.

In January, Alpha’s tax accounting reflected a loss in the amount of 600 rubles. (paid travel expenses). Since this loss will affect the determination of the tax base in the following periods, an entry is made in accounting:

Debit 09 Credit 68 subaccount “Calculations for income tax”
– 120 rub. (600 rubles × 20%) – a deferred tax asset is reflected from the tax loss.

The amount of income tax reflected in the declaration for January is zero. The balance of account 68 subaccount “Calculations for income tax” is equal to:
200,000 rub. – 120,000 rub. – 31,440 rub. – 120 rub. – 48,320 rub. – 120 rub. = 0.

The contingent income tax expense is reflected correctly. The reporting period is closed correctly.

Control check

To check whether you have correctly reflected income tax calculations in your accounting, use the formula:

If the result obtained coincides with the amount reflected on line 180 of sheet 02 of the income tax return, then you reflected the calculations in accounting correctly.

If the organization does not have permanent and temporary differences, then the profit tax in the declaration must be equal to the amount of the conditional expense for it in accounting (clause 21 of PBU 18/02).

The relationship between accounting and tax accounting indicators that influence the formation of balance sheet and taxable profit is presented in detail in the table.

How to reflect the payment of income tax in accounting

Reflect the payment of income tax to the budget by posting:

Debit 68 subaccount “Calculations for income tax” Credit 51
– income tax (advance payment) for the tax (reporting) period is transferred to the federal (regional) budget.

How to take into account the specifics of making advance payments for income tax

Advance payments for income tax are transferred in one of the following ways:

• monthly based on the profit received in the previous quarter;
• monthly based on actual profit;
• quarterly.

For those who do not apply PBU 18/02

Those who do not apply PBU 18/02, reflect advance payments and tax in accounting in the same amount as in the declaration. In this case, it is necessary to take into account certain features. Namely, the accrued amounts may have to be adjusted:

Method of transferring advance payments	Peculiarities
Monthly based on the tax profit of the previous quarter	At the end of the quarter, accrue tax as in the declaration: Debit 99 Credit 68 subaccount “Calculations for income tax – income tax has been calculated for the quarter. If at the end of the quarter the advance payment turned out to be more than the organization transferred during the quarter, pay the difference to the budget: Debit 68 subaccount “Calculations for income tax” Credit 51 – the advance payment for income tax based on the results of the quarter is transferred, taking into account previously paid amounts. If at the end of the quarter the advance payment turned out to be less than the organization transferred during the quarter, reduce the previously accrued amounts. In accounting, reflect the reversal: Debit 99 Credit 68 subaccount “Calculations for income tax” – the previously accrued amount of advance payments for income tax was reversed
Monthly based on actual tax profit	If you need to pay additional tax at the end of the year: Debit 99 Credit 68 subaccount “Calculations for income tax” – additional income tax has been accrued for the year. When, at the end of the year, the amount of accrued advance payments exceeded the tax for the year: Debit 99 Credit 68 subaccount “Calculations for income tax” – excessively accrued income tax was reversed
Quarterly from tax profit

An example of how monthly advance payments are reflected in accounting. The organization does not apply PBU 18/02, and at the end of the year a loss was determined

Organization Alpha calculates monthly advance payments based on the profits received in the previous quarter.

The amount of the monthly advance payment in the first quarter of 2017 was determined on the basis of the monthly payment in the third quarter of 2016 and amounted to 50,000 rubles. The organization transferred payments in this amount (taking into account the new tax distribution rates between the federal and regional budgets) to the budget on January 27, February 28 and March 28, 2017. During these days, Alpha's accountant made the following entry in accounting:

Debit 68 subaccount “Calculations for income tax” Credit 51
– 50,000 rub. – advance payment of income tax for the current month is transferred.

In the first quarter, Alpha made a profit of 900,000 rubles. The amount of the quarterly advance payment for income tax is 180,000 rubles. (RUB 900,000 × 20%). Based on the results of the first quarter, the organization must pay additionally to the budget:

180,000 rub. – 50,000 rub. × 3 months = 30,000 rub.

Debit 99 Credit 68 subaccount “Calculations for income tax”
– 180,000 rub. – advance payment of income tax for the first quarter has been accrued.

The amount of the monthly advance payment for the second quarter is:
900,000 rub. × 20%: 3 months. = 60,000 rub.

On April 26, the organization transferred to the budget a monthly advance payment for April and an additional payment based on the results of the first quarter:
30,000 rub. + 60,000 rub. = 90,000 rub.

Debit 68 subaccount “Calculations for income tax” Credit 51
– 30,000 rub. – the advance payment of income tax for the first quarter is transferred, taking into account previously paid amounts;

Debit 68 subaccount “Calculations for income tax” Credit 51
– 60,000 rub. – the monthly advance payment of income tax for April is listed.

Alpha's accountant made similar entries (RUB 60,000 each) on May 29 and June 28 when transferring advance payments for May and June.

In the first half of 2017, Alpha’s profit amounted to RUB 2,200,000. The amount of the advance payment for income tax is 440,000 rubles. (RUB 2,200,000 × 20%). At the end of the six months, the organization must pay additionally to the budget:
440,000 rub. – 50,000 rub. × 3 months – 30,000 rub. – 60,000 rub. × 3 months = 80,000 rub.

Debit 99 Credit 68 subaccount “Calculations for income tax”
– 260,000 rub. (440,000 rubles – 180,000 rubles) – an advance payment of income tax for the half-year has been accrued, taking into account previously accrued amounts.

The amount of the monthly advance payment for the third quarter is:
(RUB 2,200,000 – RUB 900,000) × 20%: 3 months. = 86,666.67 rub.

On July 28, the organization transferred to the budget a monthly advance payment for July and an additional payment for the first half of the year:
80,000 rub. + 86,666 rub. = 166,666 rub.

Debit 68 subaccount “Calculations for income tax” Credit 51
– 80,000 rub. – the advance payment of income tax for the six months is transferred, taking into account previously paid amounts;

Debit 68 subaccount “Calculations for income tax” Credit 51
– 86,666 rub. – the monthly advance payment for July is listed.

The Alpha accountant made similar entries (for 86,666 rubles and 86,668 rubles) on August 28 and September 28 when transferring advance payments for August and September.

For the nine months of 2017, Alpha’s profit amounted to RUB 2,900,000. The amount of the advance payment for income tax is 580,000 rubles. (RUB 2,900,000 × 20%). On September 30, the accountant made an entry in the accounts:

Debit 99 Credit 68 subaccount “Calculations for income tax”
– 140,000 rub. (RUB 580,000 – RUB 260,000 – RUB 180,000) – advance payment of income tax for nine months has been accrued, taking into account previously accrued amounts.

The amounts of monthly advance payments for the fourth quarter of 2017 and the first quarter of 2018 are:
(RUB 2,900,000 – RUB 2,200,000) × 20%: 3 months. = 46,666.67 rub.

The accountant reflected these amounts in sheet 2 of the income tax return for nine months on lines 290–310 (Q4 2017) and 320–340 (Q1 2018).

At the end of nine months, taking into account previously transferred advance payments, the organization had an overpayment in the amount of:

150,000 rub. + 30,000 rub. + 180,000 rub. + 80,000 rub. + 260,000 rub. – 580,000 rub. = 120,000 rub.

Therefore, during the fourth quarter (until December 28, 2017), Alpha must transfer to the budget only the difference between the amount of the accrued advance payment and the overpaid amount of tax in the amount of:

140,000 rub. – 120,000 rub. = 20,000 rub.

Debit 68 subaccount “Calculations for income tax” Credit 51
– 20,000 rub. – advance payment of income tax for the fourth quarter of 2017 is listed.

At the end of 2017, Alpha received a loss of 300,000 rubles. In this regard, the accountant reverses the previously accrued amounts of advance payments for income tax:

Debit 99 Credit 90-9 (91-9)
– 300,000 rub. – reflects the loss received at the end of the year;

Debit 99 Credit 68 subaccount “Calculations for income tax”
– 580,000 rub. – previously accrued advance payments for income tax were reversed.

Advance payments for income tax transferred during the year form an overpayment, which can be offset against future payments or returned to the organization.

For those who apply PBU 18/02

Those who apply PBU 18/02 should not specifically adjust advance payments accrued at the end of the reporting periods. After all, the amount of tax is formed by several indicators, and any changes will affect the size of real liabilities. If at the end of the period it is revealed that the listed advance payments are less than the tax for the reporting period, it must be paid in addition in the general manner:

Debit 68 subaccount “Calculations for income tax” Credit 51
– the advance payment for income tax based on the results of the quarter is transferred, taking into account previously paid amounts.

An example of how monthly advance payments are reflected in accounting. The organization applies PBU 18/02

Alpha LLC applies PBU 18/02. Advance tax payments are made monthly based on the profit of the previous quarter.

Alpha paid monthly advance payments in the first quarter of 2017 based on the profit of the third quarter of last year:
50,000 rub. (RUB 150,000: 3 months). At the same time, the accountant distributed the tax between the federal and regional budgets at rates of 3 and 17 percent, respectively.

Turnovers for the first quarter of 2017 in account 68 subaccount “Calculations for income tax” amounted to:

Index	Sum	Debit	Credit
	150,000 rub.	68	51
Contingent income tax expense	260,000 rub. (RUB 1,300,000 × 20%)	99	68
PNO	10,000 rub.	99	68
SHE emerged	30,000 rub.	09	68
Account balance 68	150,000 rub.	—	68

Thus, in the first quarter the current tax in accounting is equal to:
300,000 rub. (RUB 260,000 + RUB 10,000 + RUB 30,000)

At the same time, the following must be paid to the budget for the first quarter:
150,000 rub. (300,000 rub. – 150,000 rub.)

Debit 68 subaccount “Calculations for income tax” Credit 51
– 150,000 rub. – the advance payment of income tax for the first quarter is transferred, taking into account previously paid amounts.

Based on the profit received in the first quarter of 2017, the accountant determined the amount of the monthly advance payment for the second quarter:
100,000 rub. (RUB 300,000: 3 months)

Turnovers for the first half of 2017 in account 68 subaccount “Calculations for income tax” amounted to:

Index	Sum	Debit	Credit
Advance payments for income tax	600,000 rub.	68	51
Contingent income tax expense	560,000 rub. (RUB 2,800,000 × 20%)	99	68
PNO	10,000 rub.	99	68
SHE emerged	30,000 rub.	09	68
ONA extinguished	10,000 rub.	68	09
IT arose	90,000 rub.	68	77
Account balance 68	100,000 rub.	68	—

Thus, for the half-year the income tax is equal in accounting:
500,000 rub. (560,000 rub. + 10,000 rub. + (30,000 rub. –10,000 rub.) – 90,000 rub.)

This amount corresponds to the taxable profit determined in the declaration. At the same time, at the end of the six months, the organization revealed an overpayment of advance payments:
100,000 rub. (600,000 rub. – 500,000 rub.)

The monthly advance payment for the third quarter was:
RUB 66,667 ((RUB 500,000 – RUB 300,000) : 3 months)

At the same time, part of the overpayment on advance payments for the 2nd quarter went towards the 3rd quarter.

For nine months, Alpha recorded a balance sheet loss of 250,000 rubles. The tax loss amounted to 270,000 rubles. The turnover for the third quarter of 2017 in account 68 subaccount “Calculations for income tax” was recorded as follows:

Index	Sum	Debit	Credit
	700,000 rub.	68	51
Conditional income for income tax	50,000 rub. (RUB 250,000 × 20%)	68	99
PNO	35,000 rub.	99	68
SHE emerged	30,000 rub.	09	68
ONA extinguished	20,000 rub.	68	09
IT arose	90,000 rub.	68	77
IT is extinguished	45,000 rub.	77	68

Taking into account the fact that there was also a loss in tax accounting, a deductible temporary difference arose. That is, for the amount of conditional income tax income, the Alpha accountant reflected the emergence of a deferred tax asset:

Debit 09 Credit 68 “Calculations for income tax”
– 50,000 rub. – reflects the emergence of SHE.

Thus, the current tax for nine months in accounting is equal to:
0 rub. (50,000 rub. – 35,000 rub. – (30,000 rub. + 50,000 rub. – 20,000 rub.) + (90,000 rub. – 45,000 rub.))

Based on the results of nine months, the organization identified an overpayment of advance payments:
700,000 rub. (700,000 rub. – 0 rub.)

Taking into account the loss received over nine months, there is no need to transfer advance payments to Alfa during the fourth quarter.

At the end of the year, Alpha’s accounting profit was determined to be RUB 3,850,000. Tax profit amounted to RUB 3,700,000.

Index	Sum	Debit	Credit
Advance payments for income tax for the quarter, total	700,000 rub.	68	51
Contingent income tax expense	770,000 rub. (RUB 3,850,000 × 20%)	99	68
PNA	65,000 rub.	68	99
PNO	35,000 rub.	99	68
SHE emerged	80,000 rub.	09	68
ONA extinguished	80,000 rub.	68	09
IT arose	90,000 rub.	68	77
IT is extinguished	90,000 rub.	77	68

Thus, in just one year the amount of income tax in accounting was:
740,000 rub. (770,000 rub. – 65,000 rub. + 35,000 rub. + (80,000 rub. – 80,000 rub.) – (90,000 rub. – 90,000 rub.))

This amount corresponds to the income tax in the declaration.

At the same time, Alpha must pay additionally to the budget for the year:
40,000 rub. (RUB 740,000 – RUB 700,000)

Upon additional payment, Alpha’s accountant made the following entry:

Debit 68 subaccount “Calculations for income tax” Credit 51
– 40,000 rub. – income tax for the year is transferred, taking into account previously transferred advance payments.

Tax agents

Tax agents, in addition to calculating and paying tax on their own profits, must record amounts withheld from the income of their counterparties. The accounting procedure for these amounts depends on the type of income on which tax is withheld.

Types of income	Postings
	Debit	Credit	Purpose
Income from transactions with securities	91-2	66 (67)	Interest accrued on securities (loans)
	66 (67)	68 subaccount “Calculations for income tax”	Withholding tax on income from interest on securities (loans)
Dividend payment	84	75-2	Dividends accrued
	75-2	68 subaccount “Calculations for income tax”	Income tax withheld when paying dividends
Income from the use of intellectual property	20	76	Royalties accrued
	76	68 subaccount “Calculations for income tax”	Tax withheld from payments for the use of intellectual property objects
Income received by a foreign organization from the sale of property	08	76	The debt to the seller for the purchased fixed asset is reflected
	76	68 subaccount “Calculations for income tax”	Tax withheld from the income of a foreign organization from the sale of property
Other income (for example, income paid to a foreign organization for the rental of its property)	20 (26,44)	76	Rent accrued
	76	68 subaccount “Calculations for income tax”	Withholding tax on income from rent

This procedure is provided for in the Instructions for the chart of accounts (accounts 66, 68, 75, 76).

How to reflect income tax in the accounting of a consolidated group

Situation: How can a responsible participant in a consolidated group reflect in accounting the income tax accrued by other participants?

Before reflecting the income tax payable on account 68, form it as a whole for the consolidated group (CGN) on account 78. At the same time, when forming the tax, each participant must comply with PBU 18/02.

Despite the fact that account 78 is not provided for in the Chart of Accounts, it is convenient to use for synthetic accounting of settlements between participants of the consolidated group of taxpayers. This is exactly what the Russian Ministry of Finance recommends to do in letter dated March 16, 2012 No. 07-02-06/56. After all, only a responsible member of the group can determine the total amount of tax as a whole according to the consolidated group tax. Each participant’s “own” tax is not yet an obligation to the budget. Only after all participants' tax information has been collected can the total amount be determined.

What participants reflect on account 78 is listed in the table:

Responsible member of the KGN	Other KGN participants
Current income tax from your own tax base. Instead of account 68, the subaccount “Calculations for income tax”. The tax must be generated in the general manner, that is, balancing conditional expenses/income, permanent and deferred tax assets and liabilities on account 78
Settlements with all participants of the consolidated group of taxpayers for tax	Settlements with the responsible participant for tax
The difference between the income tax from your own tax base and what needs to be transferred to the responsible participant, based on the terms of the agreement on the creation of the consolidated group of taxpayers
Calculation of income tax for the group as a whole	–

Differences from each participant’s own tax base and those amounts that are redistributed according to the CTG agreement are charged to account 99 “Profits and losses”. This indicator will affect the participant’s net profit.

By the way, such differences can arise if the tax in the group is redistributed based on the share per participant. That is, when the total tax amount for the group is first determined. Next, the tax is redistributed to the responsible participant in the share determined for each participant by agreement. In this case, the tax amount of a particular participant does not matter. The tax can also be redistributed according to another principle written in the CTG agreement.

In the accounting records of each group member, calculations related to the payment of income tax are reflected in the following entries:

Debit 78 Credit 51
– money was transferred to the responsible participant to pay income tax (for all group members except the responsible one);

Debit 99 Credit 78
– the difference between the current income tax and that due from the participant is written off if the specified difference is negative;

Debit 78 Credit 99
– the difference between the current income tax and that due from the participant is written off if the specified difference is positive.

The financial results report is filled out based on how the financial result was recorded at the end of the reporting period.

Profit. Line 2410 “Current income tax” reflects the income tax generated by the participant from its own tax base. The difference between this indicator and the participant’s obligations under the consolidated group tax agreement should be reflected separately in line 2465 “Redistribution of income tax within the consolidated group of taxpayers.” Indicate negative differences in parentheses, and positive differences without parentheses.

Lesion. If a participant suffers a loss at the end of the reporting period, deferred tax asset is not formed. In such a situation, reflect the amount of the current income tax on line 2410 “Current income tax” without brackets.

If a participant suffered a loss even before entering the CTG, he may have unwritten off deferred tax assets. They do not reduce the tax base of the consolidated group of taxpayers. They are written off with the following wiring:

Debit 99 Credit 09
– a deferred tax asset is written off, which does not reduce the consolidated tax base (this entry must be made in the last reporting period before the participant enters the consolidated group).

Transactions that are reflected only by the responsible participant

The responsible member of the CRP also makes the following entries:

– income tax is accrued as a whole according to the consolidated group of taxpayers;

Debit 68 subaccount “Calculations for income tax” Credit 51
– the income tax of the group of taxpayers is transferred to the budget.

It is advisable for the responsible participant to open separate sub-accounts to account 78 for income tax settlements with each participant. Including yourself. This will simplify control over the obligations of participants based on the terms of the CTG agreement.

The person responsible reflects the repayment of obligations of CTG participants by posting:

Debit 51 Credit 78
– funds were received from a group member to repay the obligation to pay income tax.

Income tax from the consolidated tax base is not reflected in the Statement of Financial Results. The explanation is simple: the responsible participant forms the aggregate base for the corporate income tax only in tax accounting.

An example of how a participant in a consolidated group of taxpayers reflects their own income tax in accounting

Alpha LLC is a member of a consolidated group of taxpayers.

Based on the results of work for the first quarter, the following indicators necessary for calculating income tax were determined in Alpha’s accounting:

99 78 IT arose 20,000 rub. 78 77 IT is extinguished 10,000 rub. 77 78 SHE emerged 80,000 rub. 09 78 ONA extinguished 20,000 rub. 78 09

The amount of current income tax generated on account 78 was:
1,000,000 rub. + 60,000 rub. – (20,000 rub. – 10,000 rub.) + (80,000 rub. – 20,000 rub.) = 1,100,000 rub.

According to the CTG agreement, the responsible participant determined Alpha’s share in the total tax:
1,000,000 rub.

The positive difference between the current income tax and the part of the consolidated group tax attributable to Alpha is RUB 100,000. (RUB 1,100,000 – RUB 1,000,000).

The accountant reflected the write-off of the difference between Alpha's own income tax and the amount to be redistributed to the consolidated tax group by posting:

Debit 78 Credit 99
– 100,000 rub. – the difference between the current income tax and the amount of funds to be transferred is written off.

In the Financial Results Report for the first quarter, Alpha’s accountant indicated:

• on line 2410 “Current income tax” – RUB 1,100,000. (in parentheses);
• on line 2465 “Redistribution of income tax within a consolidated group of taxpayers” - 100,000 rubles. (without parentheses).

An example of how a responsible participant reflects income tax in accounting - its own and the total for a consolidated group of taxpayers

LLC “Production Firm “Master”” is a responsible participant in the consolidated group of taxpayers. The remaining members of the group are:

• Alpha LLC;
• LLC "Trading Company "Hermes"".

Based on the results of work for the first quarter, the following indicators were determined in the Master’s accounting, necessary for calculating its own income tax:

IT arose 30,000 rub. 78 77 IT is extinguished 15,000 rub. 77 78 SHE emerged 95,000 rub. 09 78 ONA extinguished 40,000 rub. 78 09

To determine the tax payment obligations for each group member, the “Masters” accountant opened corresponding subaccounts for account 78. The “Master” accountant reflects the current income tax from his own tax base in his subaccount “Settlements with the “Master””.

The amount of your own current income tax generated on account 78 subaccount “Settlements with the Master” is:
RUB 1,300,000 + 50,000 rub. – (30,000 rub. – 15,000 rub.) + (95,000 rub. – 40,000 rub.) = 1,390,000 rub.

Based on the results of the work of the consolidated group for the first quarter, the profit tax calculated on the total profit for the group as a whole amounted to RUB 4,200,000. The tax amount, determined based on the profit of each participant, was:

• for Alpha – 1,000,000 rubles;
• for “Hermes” – 1,700,000 rubles;
• for “Master” – 1,500,000 rubles.

The accrual and distribution of these obligations in the Master's accounting are reflected in the following entries:

Debit 78 Credit 68 subaccount “Calculations for income tax”
– 4,200,000 rub. – income tax was accrued for the consolidated group of taxpayers;

Debit 78 subaccount “Settlements with Alpha” Credit 78
– 1,000,000 rub. – reflects the amount of money to pay tax payable by Alfa;

Debit 78 subaccount “Settlements with Hermes” Credit 78
– 1,700,000 rub. – reflects the amount of money to pay tax payable by Hermes;

Debit 78 subaccount “Settlements with the Master” Credit 78
– 1,500,000 rub. – reflects the amount of money to pay tax payable by the “Master”.

Since the amount of the current income tax of “Master” (1,390,000 rubles) is less than the amount of funds payable under the consolidated calculation (1,500,000 rubles), a difference has arisen that reduces the net profit of “Master”.

Debit 99 Credit 78 subaccount “Settlements with the Master”
– 110,000 rub. (RUB 1,500,000 – RUB 1,390,000) – the difference between the current income tax and the amount of funds allocated to pay the tax from the Master’s funds is written off.

In the Financial Results Report for the first quarter, Master’s accountant indicated:

• on line 2410 “Current income tax” – RUB 1,390,000. (in parentheses);
• on line 2465 “Redistribution of income tax within a consolidated group of taxpayers” - 110,000 rubles. (in parentheses).

The total income tax for the consolidated group of taxpayers is not reflected in the Financial Results Report of Master.

Based on materials from the BSS "System Glavbukh"

Accounting entries for income tax are a reflection of business transactions in the organization's accounting using the double entry method. In the article we will tell you how to properly organize income tax accounting in the accounting of an enterprise; the entries are given with examples.

The main regulatory document establishing the rules for preparing accounting records for income tax (IIT) is PBU 18/02 (Order of the Ministry of Finance dated November 19, 2002 No. 114n). Non-profit organizations, as well as companies that are exempt from paying tax, have the right not to apply these provisions. But small businesses have the right to choose: reflect transactions according to general rules or organize simplified accounting.

NNP accounting

To reflect records on taxes and fees in the Unified Chart of Accounts, a separate accounting account 68 is provided. To detail information on each type of fiscal burden, special sub-accounts are opened for this account. For example, 68.4 - settlements with the budget for non-governmental organizations.

Account 68 is active-passive, that is, it can have both a debit and a credit balance. Moreover, the debit balance at the end of the billing period indicates the presence of an overpayment to the state budget. A credit balance, on the contrary, indicates the presence of debt.

The calculation, payment and accrual of income tax is reflected by posting:

Do not forget that advances for income tax should be reflected in accounting; the postings will be the same: Dt 99 Kt 68, in the “NNP” subaccount.

NNP is calculated on an accrual basis. This means that when calculating payments for the next reporting period (month, quarter), you should not indicate the entire amount of the advance, but only the difference between the amounts accrued for the current period and the previous one. In other words, the amount of NPT accrual must correspond to the data in Section 1 of the tax return for NPT.

Reflection in accounting: example

Let's look at a specific example of what records are used to record the accrual of income tax and the postings for quarterly settlements with the budget.

Example conditions:

VESNA LLC makes calculations for NNP quarterly. The amounts of accrued payments in 2019 have the following values:

• 1st quarter of 2019 - 200,000 rubles;
• 1st half of 2019 - 450,000 rubles;
• 9 months of 2019 - 800,000 rubles.

For 2019 (total for the year) - 1,000,000 rubles.

The data corresponds to line 180 of the Taxpayer Declaration for 2019. The accountant recorded the following entries in the accounting records:

Operation
Accrued corporate income tax, posting for the 1st quarter
Reflects payment of income tax (posting)
The accrual of income tax for the first half of 2019 is reflected.			(450 000 - 200 000)
Income tax transferred: posting (advance payment for 2nd quarter)
NNP was accrued for 9 months			(800 000 - 450 000)
Tax payment reflected
Tax accrued at the end of the year			(1 000 000 - 800 000)
The final calculation with the budget for 2019 was made.

If the company operates at a loss

Profitability is not the only result of the company's activities during the reporting period. Quite often, businesses operate at a loss. That is, in the reporting period, the expenses of an economic entity exceed the amount of income received.

In this case, the advance paid by the company for the previous reporting quarter or month may exceed the amount of accrued income tax for the current period. Therefore, it is necessary to adjust the accounting data. Let's look at a specific example of how to reflect this in accounting.

VESNA LLC accrued an advance for the 1st quarter of 2019 in the amount of 250,000 rubles. At the end of the 1st half of the year, the amount of payment under the NNP amounted to 200,000 rubles. We correct the data with the following accounting entries:

Let us remind you how to determine the financial result of an enterprise. Loss or profit before tax (posting) is determined as the difference between the amount of turnover in the debit and credit of account 99 in correspondence with accounts 90 (sub-account “Profit/loss from sales”) and 91 (sub-account “Balance of other income and expenses”). If a credit balance accumulates during the reporting period, this indicates that the company has made a profit. The debit balance at the end of the period indicates the losses incurred.

Accounting differences

Tax and accounting have different standards regarding the acceptance of income and expenses. So, for example, some types of expenses (income) can be accepted in one of the accounts completely and at once, and in the other - in parts over several periods or completely excluded. As a result, temporary and permanent differences arise between the NU and BU data.

Temporary, or deferred, are those differences that will level out after a certain time. For example, in accounting, a certain type of cost will be accepted in full and immediately, and in accounting in parts, over several reporting periods. And permanent differences are those types of income (expenses) that are accepted only in one of the accounts. For example, they are reflected in BU, but not in NU.

In the opposite situation, when the NU amounts are lower than the BU amounts, a permanent or deferred tax liability (PNO or ONO) arises.

We talked about how to correctly reflect such differences in accounting, as well as about the peculiarities of applying this legal regulation in a separate material “Who should apply PBU 18/02”.

The essence of these operations is to align the data of two accounts. Otherwise, disagreements will arise when preparing tax and financial statements, and this is unacceptable.