Tax accounting is the activity of compiling information from primary documentation. Grouping of information is carried out in accordance with the provisions of the Tax Code. Payers independently develop a system by which tax records will be kept. The main purpose of the activity is to determine the base of mandatory budgetary contributions.
Groups of users
The purpose of tax accounting is determined by stakeholders. Information users are divided into 2 categories: external and internal. The last is the administration of the enterprise. For internal users, tax accounting is a source of information on non-production costs. These costs, in accordance with the provisions of the Tax Code, are not taken into account when calculating the base. to them, in particular, include the costs of various types of remuneration paid to employees or senior employees, except for wages established by the contract, as well as the amount of material assistance. By reducing costs, tax accounting can optimize taxable income. External users primarily include control structures and consultants on the application of the provisions of the Tax Code. The tax authorities evaluate the correctness of the formation of the base, settlements, control the receipt of imputed payments to the budget. Consultants advise on minimizing deductions and determine the direction of the company's financial policy.
Functions
Taking into account the interests of users, it should be noted several tasks, the implementation of which provides tax accounting. It:
- The formation of reliable and complete information about the size of the income and expenses of the payer, in accordance with which the basis for mandatory contributions in the reporting period is determined.
- Providing information to external and internal users to exercise control over the correctness, timeliness of the calculation and payment of amounts to the budget.
- The administration of the enterprise receives information to optimize payments and minimize risks.
Data Synthesis Specifics
As a means of implementing the above tasks, a grouping of the primary documentation information is provided. Accounting and tax accounting work closely with each other. Meanwhile, these systems implement different tasks. In particular, tax accounting in an organization involves only a generalization of information. Data collection is carried out by primary documents. Tax accounting in the organization should reflect:
- The order in which the sums of income and expenses are formed.
- Rules for determining the share of expenses that are accounted for taxation in the current period.
- The amount of the balance of costs that are carried forward to the next time period.
- Rules for the formation of the amount of formed reserves.
- The amount of debt for settlements with the budget.
Tax accounting information is not shown on accounting accounts. This provision is reinforced by Article 314 of the Tax Code. Confirmation of tax accounting information is carried out:
- Primary documentation. Its composition, among other things, includes the accountant's certificate.
- Analytical registers.
- Calculation of the tax base.
The objects
Tax accounting is a generalization and comparison of information on the income and expenses of an enterprise to determine the loss and profit. As the latter, in accordance with Article 247 of the Tax Code, the amounts of funds received are reduced by the amount of costs. Expenses in tax accounting are divided into those that are taken into account in the current period, and those that are carried forward. One of the key tasks is the determination of the amount of obligatory payments and the amount of arrears on deductions from profit on a specific date. The subject of accounting is the non-production and production activities of the organization, in the implementation of which it has an obligation to pay tax.
Principles
Record keeping is based on the following key points:
- Monetary measurement.
- Property isolation.
- Business Continuity
- Temporary certainty of facts of economic life.
- The sequence of application of the rules and norms of the Tax Code.
- Uniformity of recognition of costs and revenues.
Monetary measurement
In accordance with Article 249 of the Tax Code, sales revenue is determined for all proceeds related to settlements for products sold or property rights that are expressed in physical or monetary forms. From Art. 252 of the Code follows that costs that are economically justified are justified costs. Moreover, their assessment should be presented in monetary terms. Revenues, the value of which is calculated in foreign currency, are recorded in conjunction with income, the amount of which is reflected in rubles. At the same time, the former are recalculated at the Central Bank rate.
Property isolation
Material assets that are owned by the enterprise should be accounted for separately from objects owned by other persons, but located in this organization. In the Tax Code, this principle is declared in relation to depreciable property. It recognizes material values, products of intellectual labor and other objects owned by the enterprise.
Business continuity
Tax accounting must be kept throughout the entire existence of the enterprise from the date of its registration to liquidation / reorganization. This principle is used in establishing the procedure for calculating depreciation of property. The calculation of the corresponding amounts is carried out exclusively during the period of operation of the enterprise and ceases when the activity is completed.
Temporary certainty of facts
According to Art. 271 Tax Code incomes are recognized only in the reporting period in which they arose. In this case, the actual receipt of funds, property rights, material values does not matter. Under Article 272 of the Tax Code, expenses that are accepted for tax purposes will be recognized as such in the period to which they relate. At the same time, the time of the actual payment of funds or payment in another form does not matter.
Other principles
Article 313 of the Tax Code contains a provision according to which the payer is obliged to consistently apply the rules and norms of tax legislation from one period to another. This principle applies to all objects, information about which is generalized to form a tax base. Articles 271 and 272 define the need for uniform recognition of costs and revenues. This principle assumes that expenses are reflected in the same period as the income for the extraction of which they were made.
Accounting and tax accounting
Forming a system for collecting and summarizing information to determine the base of taxation, an economic entity must take into account a number of requirements. Tax accounting should be organized so that the information from the primary documentation provides the ability to:
- Continuously reflect the facts of economic life in chronological sequence.
- Systematization of events.
- Formation of indicators of the declaration of deduction from profit.
Unlike accounting, which is carried out strictly according to the Accounting Regulations and the chart of accounts, strict standards are not provided for tax accounting. In this regard, the generalization of information to determine the tax base is carried out by the subject according to a system developed by him independently. At the same time, tax authorities cannot establish mandatory for all forms of documentation used by the enterprise.
Reporting Methods
An enterprise can create an autonomous accounting system that is not related to accounting. Each operation in this case will be reflected in the register. The second method is the organization of tax accounting using accounting information. This option is less labor intensive and, accordingly, more appropriate. This method is consistent with the provisions of article 313 of the Tax Code. This norm establishes that the calculation of the base at the end of each reporting period is carried out in accordance with tax accounting data, if in Sec. 25 of the Tax Code provides for the procedure for grouping and summarizing information about objects and operations to form a tax base, which differs from the scheme established by accounting rules. If the provisions coincide, then the calculation of the amounts of mandatory contributions to the budget can be made using the information of the primary documentation. In this case, it is necessary first of all to determine the objects, when accounting for which the same and different tax and accounting rules apply. Then, a procedure should be developed for applying the information of primary documentation to form a tax base. In addition, it is necessary to create register forms to highlight objects that are accounted for tax purposes.