Tax accounting skills and training

Author: Chen Yizheng
Publisher:
Publish Date: 2002-12-01
Features: After understanding the basis of taxation, the tax administrator of a business should have a clear understanding of the content of tax accounting and know how to perform tax accounting. The content of tax accounting is the specific object of tax accounting for a business. From the perspective of accounting theory, it is accounting elements; from the perspective of tax law, it is tax system elements and the tax process. Only by clarifying the accounting content can tax administrators perform reasonable tax accounting.
1. Tax Accounting Elements
Tax accounting elements are the accounting classification of the tax accounting objects and serve as the basis for tax recognition and measurement. Although tax accounting elements are generally consistent with financial accounting elements, the scope of tax accounting is relatively narrower in specific content.
(1) Assets
Assets are economic resources formed by past transactions or events and owned or controlled by a business. In tax accounting, they primarily reflect the changes in asset increases and decreases caused by tax activities and supervise the specific impact of a business's asset accounting methods on taxable amounts. For example, when a business pays taxes, it causes a decrease in bank deposits; adopting different inventory valuation methods can affect the calculation of current income tax.
(2) Liabilities
Liabilities are current obligations formed by past transactions or events that require a business to repay them with assets or services. In tax accounting, they primarily reflect the changes in liability amounts caused by tax activities and supervise the collection of taxes by a business. For example, by accounting for the "Taxes Payable" account, it reflects the situation of taxes owed but not yet paid by the business.
(3) Equity
Equity refers to the economic benefits that owners enjoy from a business's net assets, with the amount being the balance after subtracting liabilities from assets. The impact of tax activities on equity is primarily reflected in profit distribution issues.
(4) Revenue
Revenue refers to the total inflow of economic benefits formed by a business in its business activities, such as the sale of goods, provision of services, and transfer of the use (full) right of assets. Revenue is the basis for calculating turnover tax and a prerequisite for calculating income tax.
(5) Expenses
Expenses refer to the various outflows of economic benefits incurred by a business in its daily business activities, such as the sale of goods and provision of services. Correctly accounting for the total expenses and total revenue of a certain accounting period is the foundation for calculating taxable income.
2. Tax System Elements
While businesses reflect the impact of tax activities on the entire enterprise through accounting elements, they must also understand the calculation methods of different taxes based on the composition elements of the tax system. Tax system elements are the specific manifestations of tax content and mainly include three aspects: what is being taxed, how much tax is being collected, and who bears and pays the tax. From the specific content of tax law, the composition elements of the tax system generally include the following items:
(1) Taxpayers refer to legal persons, natural persons, and other organizations that fulfill tax obligations according to tax law. Different taxes specify corresponding taxpayers based on their tax objects. Related concepts to taxpayers include withholding agents, who are units or individuals designated by tax law to withhold and remit taxes, such as withholding agents for personal income tax.