Tax Differences of an Enterprise: Documentation, Accounting and Reporting

Abstract

The purpose of the article is to disclose the procedure for the application of tax differences by enterprises in the calculation of tax liabilities, for income tax, taking into account the electronic documentation of tax calculations. The actual rate of income tax of transport companies in 2015-2020 differs from the base rate of income tax to the adjustment of the pre-tax financial result on differences (tax differences). It is proved that the procedure for applying the differences involves the implementation of four interrelated stages in the calculation of tax liabilities for income tax. The first stage of accrual of income tax liabilities is to determine the annual income of the enterprise for the last reporting year in accordance with the provisions of paragraph 134.1.1. of the Tax Code of Ukraine. The second stage is the comparison of the annual income of the enterprise for the last reporting year with the critical value (UAH 40 million), including electronic documentation of the decision to apply the adjustment or refusal to adjust the financial result before tax on the difference. The third stage is to determine the differences of the enterprise from the list of differences from articles 138–140 of the Tax Code of Ukraine. The fourth stage is the calculation of four indicators (the amount of the difference by which the pre-tax financial result increases, the amount of the difference by which the pre-tax financial result reduced, the amount of the difference between the two previous indicators, income tax). The company makes electronic documentation of differences through the submission of the Tax return for corporate income tax and Annex DI to line 03 of the Tax return for corporate income tax. Submission is carried out through service «Electronic office of the payer» (E-cabinet, State Tax Service of Ukraine).