The deferred tax liability is reflected in the transaction. What are deferred tax liabilities?

Due to the existing discrepancies when taking into account expense and income items for calculation and accounting, a discrepancy is formed in the amount accrued for payment for profit according to the accounting method and indicated in the tax return.

Definition and creation of deferred liabilities

The resulting discrepancy in the accrued tax amount is reflected in special reporting (according to the provisions of PBU 18/02 for accounting for profit tax calculations).

According to PBU, indicators are divided into two types: temporary and permanent. The first include those reflected at one time (period) as expenses/revenues and taken into account in another period for taxation. Indicators of the second type in the form of income or expenses are not taken into account according to the taxable base, but are taken into account according to accounting or vice versa. The result of the resulting discrepancy in the amount of profit before tax, which was greater in terms of income according to the accounting method than according to the tax method, was the emergence of a deferred tax liability (DTL).

IT represents a deferred portion of income tax, causing an increase in income tax in future temporary reporting periods. Recognition of these obligations is carried out in the cycle in which the corresponding temporary differences occurred.

IT = Temporary differences subject to tax * amount of deduction from profit (rate)

The reasons for the formation of temporary differences accepted for taxation may be:

the difference in methods for calculating depreciation in two accounting options (tax, accounting method);
difference in the types of accounting for expense transactions: according to the cash method in accounting and according to the tax method, accrual method;
discrepancy in accounting and taxation methods for reflecting interest payments made by enterprises when using borrowed funds (loans, credits);
rescheduling (deferment) or payment in installments (installments) of tax payments on profits.

Reflection of deferred tax liabilities in accounting

To display deferred tax liabilities in accounting documentation, a credit of account 77 is used paired with a debit of account 68 (for calculations of taxes and fees). For statements of losses and profits, the display is taken into account on line 2430, for the balance sheet - on line 1420.

For your information! Deferred tax liabilities should not be mixed with permanent tax assets. The source for the appearance of the latter is in the constant discrepancies that arise in accounting methods, accounting and tax. In subsequent periods, permanent differences are not subject to disappearance (as taxable and subtractable). Permanent assets are associated with the reflection of certain costs in only one accounting method - the tax method. For example, the amount of depreciation bonus on capital investments does not find expression in the accounting bonus, because such a concept does not exist in accounting.

Calculation example 1. The company leased a production tool worth RUB 750,000. with a service life of 7 years. According to accounting, depreciation of the acquisition amounted to 50,000 rubles, according to the tax method - 150,000 rubles, due to coefficient 3. Before calculation and taxation, the profit in the first case reached 600,000 rubles, in the second, the taxable base was 500,000 rubles. The tax rate on profit is 20%.

The difference between the two depreciation values amounted to 100,000 rubles. (150,000 rubles - 50,000 rubles), seems temporary, since after 7 years the amount will be fully accounted for as depreciated using both accounting methods.

This difference leads to the formation of IT, equal to 20,000 rubles in the example under consideration. (RUB 100,000 * 20%).

The correctness of the calculation must be confirmed by the same tax amounts according to the PBU method and in the declaration.

Current tax (PBU) = 100,000 rubles. = tax expense on profit (conditional) – IT = 120,000 rub. (profit of 600,000 rubles * 20%) – 20,000 rubles.

Profit tax indicated in the declaration = 100,000 rubles. = taxable base of 500,000 rubles. * 20%.

Write-off of deferred tax liabilities

When the volume of temporary differences decreases, deferred tax liabilities are reduced and written off. The operation is accompanied by posting to the accounts: Dt 77 (“ONO”) / Kt 68 (“Tax calculations”).

Calculation example 2. For the entire volume of temporary differences taken into account on the taxable base at the beginning of the period (500,000 rubles), a deferred liability equal to 100,000 rubles was calculated. (RUB 500,000 * 20%). Entry on the accounts of the transaction for the accrual of 100,000 rubles: Dt 68 / Kt 77.

By the end of the accounting period, temporary differences were partially written off, amounting to a total of RUB 200,000. In this connection, accrued deferred liabilities amount to RUB 40,000. (RUB 200,000 * 20%).

The previously accrued deferred amount is subject to write-off in the amount of RUB 60,000. (100,000 rub. – 40,000 rub.). Recording a transaction to write off RUB 60,000. according to accounts: Dt 77 / Kt 68.

In the event of disposal of an object in connection with which taxable differences were formed, the accrued liability must be written off in full. The operation performed in this case will be reflected using accounts 77 (Dt) and 99 (Kt) (“Profits, losses”).

Calculation example 3. The initial cost of a fixed asset recorded on the company's balance sheet is 1,000,000 rubles. The calculation of depreciation at the end of the accounting period was carried out using different methods and amounted to 300,000 rubles. in accounting and 600,000 rubles. according to taxable accounting. The temporary taxable difference for the object in question amounted to RUB 300,000. (600,000 rub. – 300,000 rub.). The deferred tax amount is RUB 60,000. (RUB 300,000 * 20%).

The amount (60,000 rubles) was calculated by posting to the accounts: Dt 68 / Kt 77.

When selling—a fixed asset—the deferred liability must be written off. Operation to write off 60,000 rubles. according to the accounts it will look like: Dt 77 / Kt 99.

For your information! If the income tax rate decreases, deferred liabilities are also subject to write-off, and if the rate increases, additional tax is charged. The wiring affects Dt 84 ch. (“Retained profit”) / Kt 77 account. When decreasing, reverse wiring is performed.

Carrying out an inventory of deferred tax liabilities

For each enterprise, existing liabilities and assets are subject to mandatory inventory to determine the actual presence of objects and compare it with accounting information (Federal Law No. 402, December 6, 2011).

The actual availability of deferred tax amounts is determined by comparing the available information obtained using both accounting methods. When receiving discrepancies between cost or income indicators, it is necessary to identify the reasons and determine the period of their occurrence.

Balances on account 77 may arise not only due to the excess of tax costs over accounting or accounting income over taxable ones, but also due to errors in past reporting periods that occurred as a result of:

failure to reflect in accounting the full repayment of IT or a reduction in its value;
non-write-off of IT in the situation of disposal of liabilities, assets that served as the basis for accrual of the amount;
records in the form of a temporary rather than permanent difference in taxable and accounting expenses and receipts.

If a discrepancy discovered during reconciliation, which led to the appearance of IT, exists, then the deferred liability should be reflected in accounting. If the discovered reason that led to the appearance of the IT is later canceled in one of the past periods without reference to the IT, then the discrepancy must be recorded in accounting. The registration period is the reporting period in which the inventory was carried out.

The write-off of deferred liabilities discovered during a targeted audit can be carried out subsequently as follows:

Writing off an error. Removal of the amount (Dt 77 inc. / Kt 68 inc.) is allowed if a tax liability (for profit) is discovered that is not capitalized in account 68 and is equal to the value of IT (Order of the Ministry of Finance of the Russian Federation No. 63, 06/28/2010). In other situations, the adjustment is made by comparison with the balances of profits/losses (account 99) or with the account of retained earnings (account 84).
Write-off of profits of past periods. The method is used if the reasons for the formation and non-writing off of deferred liabilities are not discovered. IT is written off as the profit of past periods established in the reporting period (Dt 77 inc. / Kt 99 inc.) on the basis of an order from the management of the enterprise, issued based on the results of the inventory and information from the prepared accounting certificate.

For your information! For other income, IT is allocated using account 99, but not account 91 (accounting for other costs or income). In the future, there is no impact on the value of the profit tax from the previously formed temporary difference, therefore, by adjusting IT, the amount of conditional income for the profit tax is regulated (Order of the Ministry of Finance of the Russian Federation No. 94, October 31, 2000). The write-off of IT after inventory (for other income) is assessed in the same way.

We talked about temporary differences in accounting and tax accounting in ours and noted that such differences can be deductible (DVR) and taxable (TVR). VVR lead to the formation of a deferred tax asset (DTA), and DVR lead to the formation of a deferred tax liability (DTL) (clauses 11, 12 of PBU 18/02). To summarize information about the availability and movement of IT, the Chart of Accounts and the Instructions for its use are intended for account 77 “Deferred tax obligations» ().

Accounting on account 77

Accounting account 77 is a passive synthetic account. The credit of account 77 reflects deferred tax, which reduces the amount of conditional expense (income) of the reporting period (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Debit account 68 “Calculations for taxes and fees” - Credit account 77

The value of IT reflected in this posting is determined by the formula:

IT = NVR * S,

where C is the profit tax rate in force in the reporting period.

In general, IT is 20% of the NVR (clause 2 of Article 284 of the Tax Code of the Russian Federation).

If the occurrence of IT is reflected on the credit of account 77, then the debit of this account takes into account the decrease or full repayment of IT towards the accrual of income tax for the reporting period:

Debit account 77 - Credit account 68

If the object for which IT was accrued is disposed of, the deferred tax liability is written off (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Debit account 77 - Credit account 99 “Profits and losses”

Analytical accounting on account 77 is carried out according to the types of assets or liabilities in the assessment of which the non-renewable income arose.

IN balance sheet the balance of IT is reflected in liabilities as part of long-term liabilities on line 1420 “Deferred tax liabilities” (Order of the Ministry of Finance dated July 2, 2010 No. 66n).

Account 77 “Deferred tax liabilities”: example

Taxable temporary differences that lead to the formation of NNO, in particular, may arise as a result (clause 12 of PBU 18/02):

application of different methods of calculating depreciation for accounting and tax purposes;
recognition of revenue from the sale of products (goods, works, services) in the form of income from ordinary activities of the reporting period, as well as recognition of interest income for accounting purposes at the time of accrual, and for tax purposes - on a cash basis;
application of various rules for reflecting interest paid by an organization on loans and borrowings for accounting and tax purposes;
other similar differences.

The simplest case of the occurrence of IT is a difference in the methods of calculating depreciation, as a result of which the amounts of depreciation expenses in accounting and tax accounting do not coincide.

For example, for the first year of depreciation of a fixed asset, depreciation amounted to:

in accounting - 250,000 rubles;
in tax accounting - 320,000 rubles.

All other things being equal, this difference leads to the fact that the accounting profit for this year will be more than the tax profit by 70,000 rubles (320,000 rubles - 250,000 rubles). Therefore, IT arises: Debit account 68 - Credit account 77 in the amount of 14,000 (70,000 x 20%).

As accounting depreciation will begin to exceed the tax tax, IT will be repaid: Debit of account 77 - Credit of account 68.

Rules in accordance with which income and expenses are recorded for taxation and preparation purposes financial statements, have a number of differences. In this regard, the amounts reflected in some documents do not coincide with the indicators of others. Accordingly, difficulties often arise when preparing reports.

PBU 18/02

This provision was introduced to reflect differences in tax amounts in reporting. PBU differentiates indicators into permanent and temporary. The first includes income/expenses that are reflected in accounting, but are never taken into account in calculating the tax base. They can also be taken into account when determining the latter, but are not subject to recording in accounting documentation. Temporary are income/expenses that are shown in reporting in one period, but for taxation purposes are accepted in another time period. As a result of these differences, a deferred tax liability arises. This PBU also provides for a certain procedure for reflecting deductions from profits. Conditional expense/income is equal to the product of the payment rate to the budget and The adjustment of this indicator is affected by deferred tax assets and deferred tax liabilities, as well as permanent differences. As a result, the amount that is reflected in the declaration is determined.

Terminology

The deferred tax liability is that part of the contribution to the budget, which in the next period should lead to an increase in the payment amount. For brevity, in practice the abbreviation ONO is used. A deferred tax liability is a temporary difference that arises if income before taxation is greater than in the return. To determine the indicator, the formula is used:

IT = profit deduction rate x temporary difference.

Deferred tax liability: account

The accounting documentation provides for a special item under which IT is reflected. This is the count. 77. Deferred tax liabilities on the balance sheet are shown on line 1420. In the loss/profit statement, this value is reflected on line 2430.

SHE

If the deductible difference is multiplied by the deduction rate, the result is an amount that has already been paid to the budget, but is subject to credit in the upcoming period. This value is called a deferred asset. SHE is the positive difference between the current, actual deduction and the conditional expense based on the amount calculated from profit. It is written off from the account. 09. If depreciation is provided for in the future cycle, then in accounting it is not charged to fixed assets, but in tax accounting it is calculated.

Temporary difference (TD)

It is determined similarly to the method given for OHA. However, this quantity has the opposite sign. Deferred tax liability is an amount that results in increased payments to the budget in future periods. These deductions will need to be paid later.

Specifics

Deferred tax liabilities are accounted for in the period in which the corresponding differences arise. To better understand the essence, you can take VAT on profits when determining the moment of the appearance of amounts subject to deduction to the budget in the upcoming cycle. As a future deduction, VAT is reflected in the account. 76. IT is recorded in the same way, only under Article 77.

Adjustments

In the process of decreasing or complete elimination temporary differences will decrease and the deferred liability will decrease. Information in the article's analytics will be corrected. Upon disposal of an asset or liability for which accruals were made, these amounts will not affect the amount of deductions in future periods. In such cases, IT is written off. Deferred liabilities are reflected in the profit and loss account. They are shown in the debit of the account. 99. At the same time, count. 77 is credited. In the reporting period, in the process of determining the indicator on line 2420, the repaid amount and the indicator of newly arisen IT are entered. When filling out lines 2430, 2450, you should use the “debit-credit” rule. According to the account 09 and 77 subtract the expenditure turnover from the income turnover, then determine the sign of the result obtained. In the reporting, a positive or negative (in parentheses) value is indicated in the corresponding lines. If IT changes upward, the deduction from profit will decrease. And, conversely, if it decreases, the payment will increase.

Current profit deduction

It consists of the amount actually paid to the budget within the reporting period. This value is calculated based on the amount of conditional income/expenses, as well as its adjustments to the indicators used in the formation of IT, IT and fixed payments. For calculations, therefore, use the formula:

TN = UR(UD) + PNO - PNA + SHE - IT.

The calculation model is defined in PBU 18/02, in paragraph 21. You can check the correctness of the calculation using an alternative formula:

Practical use

How is deferred tax liability shown? An example can be given as follows. Let's say an organization purchased a computer program. The cost of the software is 8 thousand rubles. At the same time, the developers limited the period of use of the program. In this regard, the director of the enterprise ordered the write-off of costs for the purchase of software over two years. In the financial documentation, the amount is included in deferred costs. It is allowed to write off the cost of the program as a lump sum expense in tax accounting. As a result, a temporary difference appeared. The conditional payment from profit will be higher than the current one by the amount IT: 8000 x deduction rate. This will be reflected in the financial documentation as follows:

In this case, the item that reflects the amount of upcoming payments acts as a passive balance sheet. It accumulates tax amounts subject to additional payment in future periods. It is written off in future cycles. In the example under consideration, the computer program was removed from tax reporting. Accordingly, it does not in any way affect the costs of the enterprise. In accounting, on the contrary, write-offs apply only to a certain part of the program that falls within the current financial period. The information is displayed in the following way:

Dt sch. 20 CD count. 97 - part of the cost computer program(excluding VAT);
Dt sch. 19/04 Kd sch. 97 - deduction amount

In such a situation, the amount of the current payment to the budget will be greater than the conditional one. Part of the latter must be paid extra. The postings result in a debit turnover.

Location: Moscow
Subject: “The relationship between accounting and tax accounting: application of PBU 18/02 and calculation of differences”
Duration: 2 hours
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Expenses or income in accounting and tax accounting may be recognized in different ways. In this case, it is necessary to take into account the differences in order to link accounting and tax profits. For this you need PBU 18/02. The only person who has the right not to use it is non-profit organizations and small businesses.

Permanent and temporary differences

When the procedure for recognizing income or expenses in accounting and tax accounting differs, differences arise. PBU 18/02 divides them into two types - temporary and permanent. The diagram will help you figure out what type of difference the identified difference belongs to (see below. – Editor’s note).

How to determine the type of difference according to PBU 18/02

If income or expense is recognized in only one account, a permanent difference is created. In this case, the discrepancy between accounting and tax accounting will not go away even with the passage of time. For example, a permanent difference will arise if expenses are recognized in accounting, but from the point of view of tax legislation they are not expenses. These include entertainment expenses and advertising expenses in excess of the limit. In accounting, the company recognizes them in full, but for income tax purposes it will not be possible to take into account expenses in excess of the standard. Then a permanent difference will arise, which increases the amount of tax profit.

Sometimes a permanent difference is formed, which, on the contrary, reduces profit in tax accounting. True, this does not happen very often. An example is a situation where a company receives income from the transfer of property as a share in the authorized capital of another organization. This income does not need to be recognized in tax accounting (subclause 2, clause 1, Article 277 of the Tax Code of the Russian Federation), but in accounting it is the other way around.

When, due to a permanent difference, the profit in tax accounting is greater than in accounting, a permanent tax liability (PNO) is formed. And if, on the contrary, the accounting profit is greater than the tax profit, a permanent tax asset is reflected - PNA. To calculate PNO or PNA, you need to multiply the constant difference by the income tax rate.

In accounting for PNO, it is reflected by an entry in the debit of account 99 of the sub-account “Fixed tax liabilities” and in the credit of account 68 of the sub-account “Calculations for income tax”. And in order to record the asset, the accountant makes a reverse entry to the debit of account 68 and the credit of account 99 of the “Permanent tax assets” subaccount.

EXAMPLE 1

Constant differences
When calculating income tax for 2014, the accountant discovered that the amount of entertainment expenses for the year amounted to 30,000 rubles. However, since labor costs for the year are equal to 700,000 rubles, only 28,000 rubles can be recognized in tax accounting. (RUB 700,000 × 4%). In this case, a permanent difference in the amount of 2000 rubles is formed. (30,000 - 28,000) and the corresponding PNO - 400 rubles. (RUB 2,000 × 20%). After all, expenses that exceed the standard will never be recognized in tax accounting and they increase the amount of income tax. The accountant took into account entertainment expenses and accrued PNO by posting:

DEBIT 26 CREDIT 60
– 30,000 rub. – entertainment expenses are taken into account;

DEBIT 99 subaccount “Permanent tax liabilities”
CREDIT 68 subaccount “Calculations for income tax”
– 400 rub. – a permanent tax liability has been accrued.

Also in the reporting year, the company acquired a stake in the authorized capital of another organization in the amount of 10,000 rubles. As a contribution to the authorized capital, the company transferred goods with a book value of 7,000 rubles. The difference between the estimated and book value of the deposit in the amount of 3,000 rubles. (10,000 – 7,000) the accountant will include in other income. To do this, he will write:

DEBIT 76 CREDIT 91 subaccount “Other income”
– 3000 rub. – income from the transfer of goods as a contribution to the authorized capital of another organization is reflected.

However, income does not arise in tax accounting (subclause 2, clause 1, article 277 of the Tax Code of the Russian Federation). Therefore, a permanent tax asset is formed in the amount of 600 rubles. (3000 × 20%), which the accountant will reflect in accounting as follows:

DEBIT 68 subaccount “Calculations for income tax”
CREDIT 99 subaccount “Permanent tax assets”
– 600 rub. – a permanent tax asset has been accrued.

When an expense or income is recognized in tax accounting in one period, and in accounting in another, temporary differences arise. In this case, unlike permanent differences, the difference between accounting and tax accounting is eliminated over time. For example, a temporary difference may arise if a company calculates depreciation differently in accounting and tax accounting. A good example is the depreciation bonus. This opportunity exists only in tax accounting, where a company can write off part of the cost of a fixed asset immediately. But such a mechanism is not provided for in accounting. Here the value of the property will be written off in the usual manner.

Temporary differences are divided into two types - deductible and taxable. When because of the difference tax profit greater than the accounting one, a deductible temporary difference arises. Then the accountant will generate a deferred tax asset (DTA), the value of which is equal to the temporary difference multiplied by the tax rate.

And if the difference that arises reduces profit in tax accounting and increases it in accounting, it is taxable and forms a deferred tax liability (DTL). IT is calculated by analogy: by multiplying the taxable difference by the tax rate.

To account for IT, the accountant uses account 09 “Deferred tax assets”, and liabilities – account 77 “Deferred tax liabilities”. The accrual of the asset is reflected by posting to the debit of account 09 and the credit of account 68 of the sub-account “Income Tax Calculations”, and the liabilities - to the debit of account 68 and the credit of account 77. In future reporting periods, income and expenses in accounting and tax accounting will begin to gradually converge, and deferred assets and liabilities will be repaid by reverse entries.

EXAMPLE 2

Taxable temporary differences
In November 2014, the company purchased the car. Its initial cost is 1,080,000 rubles. (excluding VAT). The accountant took vehicle to the second depreciation group and set a deadline beneficial use 36 months. IN accounting policy The tax company has the opportunity to use bonus depreciation and write off 10 percent of the original cost of the car at a time. In accounting, the amount of monthly depreciation will be 30,000 rubles. (RUB 1,080,000: 36 months).
But the tax calculation will be different. First, the accountant will determine the amount of bonus depreciation. It will be 108,000 rubles. (RUB 1,080,000 × 10%). The accountant will include this amount in expenses in full in December - in the period when the company begins to operate the fixed asset. The cost of the car, on which depreciation will be calculated in tax accounting, is equal to 972,000 rubles. (1,080,000 – 108,000), respectively, the monthly amount of deductions will be 27,000 rubles. (RUB 972,000: 36 months). Thus, in December, the amount of depreciation expenses in tax accounting is equal to 135,000 rubles. (27,000 + 108,000). And in accounting - 30,000 rubles. A taxable temporary difference will arise in the amount of RUB 105,000. (135,000 – 30,000) and IT – 21,000 rubles. (RUB 105,000 × 20%). In December, the accountant will make the following entries:

DEBIT 26 CREDIT 02
– 30,000 rub. – depreciation accrued for December;

DEBIT 68 subaccount “Calculations for income tax” CREDIT 77
– 21,000 rub. – deferred tax liability is reflected.

And then, from January next year, depreciation expense in accounting will be greater than in tax accounting by 3,000 rubles. (30,000 – 27,000). The temporary difference will be reduced monthly by this amount. And the accountant will repay IT for 600 rubles every month. (RUB 3,000 × 20%) by posting to the debit of account 77 “Deferred tax liabilities” and the credit of account 68 subaccount “Calculations for income tax.”

EXAMPLE 3

Deductible temporary differences
The company's balance sheet includes production equipment original cost 120,000 rub. For accounting purposes, the useful life of the equipment is 24 months. And in tax accounting, the accountant set a longer period - 40 months. The company put the equipment into operation in November 2014, and began accruing depreciation in December. Its value in accounting will be 5,000 rubles. (RUB 120,000 / 24 months). And in tax accounting, the amount of monthly depreciation is 3,000 rubles. (RUB 120,000: 40 months).
Every month the accountant will record the deductible temporary difference - 2000 rubles. (5000 – 3000) and create a deferred tax asset by writing:

DEBIT 09 CREDIT 68 subaccount “Calculations for income tax”
– 400 rub. (RUB 2,000 × 20%) – a deferred tax asset is reflected.

After 24 months, when the cost of the equipment is fully expensed for accounting purposes and still depreciable for income tax purposes, the temporary difference will begin to decrease. And the accountant will repay the deferred tax asset monthly by posting:

DEBIT 68 subaccount “Calculations for income tax” CREDIT 09
– 600 rub. (RUB 3,000 × 20%) – the deferred tax asset is repaid.

The company shows tax liabilities and assets in its reporting (see table below. – Editor’s note). Deferred tax assets and liabilities are reflected in the balance sheet (lines, ), and their changes are reflected in the income statement. financial results(lines , ). Information on permanent tax assets and liabilities is provided for reference in the income statement on line 2421.

How to report permanent and deferred tax assets and liabilities in financial statements

Type of asset or liability	How is it reflected in the reporting?
Deferred tax asset	In the balance sheet, line 1180 reflects the balance of account 09. And in the financial results statement on line 2450, the difference between the debit and credit turnover of the account is recorded. If it is positive, the amount is indicated with a “+” sign. And when it is negative – with a “–” sign
Deferred tax liability	Line 1420 of the balance sheet shows the account balance 77. And on line 2430 of the financial results report - the difference between the turnover on the credit and debit of account 77. A positive amount is reflected with a “–” sign, a negative amount with a “+” sign.
Permanent tax asset, permanent tax liability	The difference between PNO and PNA is recorded on line 2421 of the financial results statement. If the difference is negative, it must be indicated with a “–” sign.

ABOUT THE LECTURER

Sergei Aleksandrovich Tarakanov – adviser to the state civil service RF 2nd class. Graduated from Modern Humanities University(institute) in 1998. Bachelor of Law. Until 2003, he worked in various commercial organizations as a lawyer. From 2003 to the present, he has been working in the Federal Tax Service of Russia (formerly the Ministry of Taxes of Russia), first as a consultant in the Department of Largest Taxpayers, now as a head of department in the Control Department.

Conditional income or expense and current income tax

Permanent and temporary differences are needed in order to link profits in accounting and tax accounting. For this purpose, PBU 18/02 introduces additional concepts - “conditional income tax expense (income)” and “current income tax”.

To calculate the conditional expense, you need to multiply the profit according to accounting data by the tax rate. And if the company received a loss in the reporting period, then the profit tax on its amount forms conditional income. To account for conditional expenses or income, account 99 is used. The first is reflected by an entry in the debit of account 99 subaccount “Conditional income tax expense” and in the credit of account 68 subaccount “Calculations for income tax.” And conditional income is accrued by posting to the debit of account 68 subaccount “Calculations for income tax” and the credit of account 99 subaccount “Conditional income for income tax”.

Current income tax is the result of multiplying profit in tax accounting by the tax rate. This indicator is calculated using the formula (clause 21 of PBU 18/02):

TNP = +(–) U – PNA + PNA +(–) ONA +(–) ONO,
where TNP is the current income tax;
U is a conditional income tax expense or income.

The rules for accounting for income and expenses of an enterprise in the process of determining the tax base for income tax and in accounting differ. A number of business transactions carried out in the reporting period lead to discrepancies between the profit calculated according to the accounting rules and the taxable profit of the enterprise. Cases when profit is tax return less than the amount of accounting profit, and the resulting difference will be compensated only in subsequent periods, are called “deferred tax liabilities.”

What are deferred tax liabilities?

If all the rules for calculating the accounting profit of an enterprise and taxable profit for the same period are observed, situations arise in which profit indicators for taxation and accounting purposes will differ.

The differences that arise can be permanent or temporary. Temporary differences mean that taxable profit will be adjusted to the amounts of previously incurred differences in subsequent periods. Deferred tax liabilities are temporary positive differences that will entail an increase in income tax in subsequent periods, gradually aligning the estimated income tax values according to accounting data with the income tax payable according to tax rules.

Reasons for the occurrence of deferred tax liabilities

The reason for the occurrence of deferred tax liabilities is the accounting rules lawfully applied by the enterprise, under which the accounting profit in a particular period will differ from the taxable one and the difference will gradually be repaid in subsequent periods. Reasons for deferred income tax include:

applicable different ways accounting for depreciation when calculating income tax and in accounting;
recognition of revenue and interest income for taxation on a cash basis, and in accounting - according to the temporary certainty of facts;
different accounting of interest on loans and borrowings;
other similar accounting differences.

The procedure for reflecting and accounting for deferred tax liabilities

The procedure for accounting for deferred tax liabilities is set out in PBU 18/02 (Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 N114n). The purpose of accounting for discrepancies between the actually paid income tax and the estimated (conditional) tax according to accounting data is to comply with the principle of completeness and continuity of accounting.

The responsibility for accounting for differences that arise is assigned to all enterprises and organizations, except those to which simplified accounting forms are applied. Deferred tax liabilities are indicated as part of debt obligations in the organization's balance sheet (line 1420), as well as in the profit and loss statement (line 2430) in the form of a positive or negative difference in turnover on the accounting accounts reflecting them.

To account for accounting purposes, the Chart of Accounts provides for a separate balance sheet account 77; in analytical accounting, liabilities are separately accounted for by the types of accounting objects in the valuation of which a taxable difference arose. Deferred tax liabilities are subject to accounting using the formula:

Temporary difference x Profit tax rate effective at the reporting date,

where the temporary difference is calculated as the difference between the organization's accounting profit and taxable profit.

Accounting entries in account 77 reflect the occurrence, movement and loss of deferred tax liabilities.