PNO

Permanent differences arise as a result of differences in the implementation of accounting and tax accounting. Permanent tax liabilities (PNO) are formed due to the excess of income tax calculated on the basis of tax accounting over tax on accounting profit. The formation of a permanent obligation is carried out on the basis of PBU 18/02 (Order of the Ministry of Finance of the Russian Federation of November 19, 2002 N114n).

What are permanent tax liabilities

Income and expenses generated as a result of doing business are reflected in accounting and tax accounting in different ways. Some types of these indicators are recognized in both accounts in different amounts. Also, the formation of the initial value of assets differs in accounting and tax accounting. As a result, POs arise.

The differences between income tax calculated on the basis of tax accounting and tax on accounting profit are of two types:

• Permanent tax assets;
• Permanent tax liability.

Permanent tax assets arise when some expenses are recognized only in accounting for tax purposes or some income is recorded only in accounting. As a result, accounting income exceeds taxable income. PNA is equal to the amount of expenses or income accepted in tax or accounting records, respectively, multiplied by 20%.

The appearance of PNO means that some income is recognized only in accounting for tax purposes or some expenses are recognized only in accounting. In this regard, a situation arises when the profit according to accounting data is less than the taxable profit. A permanent liability is calculated as accounting expenses (income recognized in tax accounting) multiplied by 20%.

One of the meanings for which the calculation and accounting of the above values ​​is made is to explain the difference in the amount of profit according to accounting and tax reporting.

Operations that cause PNO

Since permanent tax liabilities appear as a result of the fact that expenses are recognized as such only in accounting or income is taken into account only in tax accounting when creating an income tax base, there are many operations that entail the occurrence of PNO:

• transfer of the organization's property, owned by it by right of ownership, to a third party without payment, that is, free of charge. In tax accounting, such a transfer, as well as the residual value of this property, are not taken into account as expenses. In accounting, gratuitous transfer is recognized as an expense;
• the organization had a loss in tax accounting, that is, at the end of the year, when calculating the income tax base, expenses exceeded income. Until 2017, the income tax base could be reduced by the amount of the loss in full within 10 years from the moment the loss occurred. After 10 years, the loss cannot be taken into account in tax accounting, while it continues to be taken into account in accounting;
• corporate expenses. When accepted for accounting for income tax, expenses must be documented, have a justification, and must also be related to entrepreneurial activity. Since corporate expenses do not meet these requirements, they are not accepted in tax accounting;
• revaluation of a fixed asset associated with a change in the value of an object on the market. During the revaluation, the initial cost of fixed assets or the current one (if the object has already been revalued) is recalculated. This entails the recalculation of depreciation from the moment the object was put into use. However, these changes are taken into account only in accounting, they do not matter for tax accounting.

Permanent and temporary differences are formed due to the difference in the calculation of profit in tax and accounting. Profit in tax accounting and in accounting does not always coincide due to different ways of writing off the value of fixed assets, losses and other reasons.

Accounting for permanent and temporary differences is defined in the Accounting Regulation "Accounting for income tax settlements" PBU 18/02, approved by order of the Ministry of Finance of Russia No. 114n dated 11/19/2002. PBUs are required to use all organizations, except for credit, insurance and budgetary organizations. This provision may not apply to small businesses.

How to account for permanent differences.

Permanent differences arise when a company incurs expenses that are accounted for in accounting, but are not taken into account when determining income tax, or are taken into account within the limits of standards.
These expenses are:
- expenses for training and retraining of personnel;
- hospitality expenses;
– expenses for compensation for the use of personal cars for business trips;
- advertising expenses;
- the value of donated property, etc.

The calculation of the constant difference is determined by the formula:

Amount of expense, _ Amount of given expense, = Constant difference
recognized in accounting recognized in tax accounting

In accounting, the amount of the resulting permanent difference is reflected in the account where the asset or liability for which it arose is kept.

What do permanent accounting differences mean? This indicates that the income tax calculated for tax accounting is greater than the income tax according to accounting data. This difference is called the permanent tax liability.

For this calculation, it is necessary to multiply the constant difference by the income tax rate.

Permanent tax liabilities are accounted for on account 99 “Profit and Loss”.

An example of calculating permanent tax liabilities.

Example 1 The company allocated gifts to employees by March 8 for a total of 20,000 rubles. This amount relates to non-operating expenses and is reflected in the posting:
Dt 91, Kt 41 = 20,000 rubles. - the cost of the gifts transferred is written off as non-sales expenses.

Based on paragraph 16 of Art. 270 of the Tax Code of the Russian Federation, the value of property transferred free of charge is not included in expenses that reduce the tax base for income tax. Therefore, there is a permanent difference in accounting. Calculate the amount of permanent tax liability

20 000 rub. x 20% = 4000 rubles.

This operation is reflected in the accounting entry:
Dt 99, subaccount "Permanent tax liability", K-68, subaccount "Income tax" - 4000 rubles.

How are temporary differences accounted for?

How and when do temporary differences arise? Temporary differences arise if the time of recognition of expenses or income does not coincide in accounting and tax accounting. In accounting, temporary differences are treated in the same way as permanent differences.

Temporary differences are divided into deductible and taxable.

Deductible temporary differences.

Deductible temporary differences are formed when expenses are recognized earlier in accounting and revenues later than in tax accounting. For example, a company uses the cash method of accounting and releases the goods into production, but the money for the goods will be received later after its sale. can also be calculated in different ways, and in accounting the amount of depreciation may be greater than in tax accounting.

How to calculate deferred tax assets?

To do this, the deductible temporary difference must be multiplied by the income tax rate. This amount will be considered a deferred tax asset. In accordance with the order of the Ministry of Finance of Russia No. 38n dated May 7, 2003, the deferred tax asset is recorded on account 09 “Deferred tax asset”.

Example 2

Since July 2016 CJSC "Kirpich" has put the machine into operation. The machine is subject to depreciation, which in accounting is calculated based on its useful life, and in tax accounting - on a straight-line basis. The depreciation amount for July was:
- according to accounting data - 5000 rubles;
- according to tax accounting -3000 rubles.

That is, the deductible temporary difference amounted to 2,000 rubles (5,000 - 3,000).

The income tax rate is 20 percent. The deferred tax asset is calculated as follows:
2000 rubles x 20% = 400 rubles.

Accounting entries for deductible temporary differences.

D-t 02 K-t 02 sub-account "Deductible temporary differences" = 2000 rubles - the deductible temporary difference is reflected;

Dt 09 Kt 68 sub-account “Calculations for income tax” = 400 rubles - a deferred tax asset is reflected.

Temporary differences may be reduced or cancelled. Then the reverse posting is made in accounting:

D-t 68 sub-account "Calculations for income tax" K-t 09 - the amount of the deferred tax asset has been reduced or fully repaid.

Upon disposal of an asset for which a deferred tax asset was accrued, the following entry is made:

Dt 99 Kt 09 - the amount of the deferred tax asset is written off.

Example 3

We complicate the previous example. In August 2016 the machine was sold. Making postings

Dt 02 sub-account "Deductible temporary differences" Kt 02 = 2000 rubles - the deductible temporary difference is written off;

Dt 99 Kt 09 = 400 rubles - the amount of the deferred tax asset is written off.

taxable temporary differences.

Taxable differences arise at the moment when expenses are recognized in accounting later, and income is recognized earlier than in tax accounting. For example, a company uses the cash method of accounting for revenue, has sold products, but has not yet received money.

The amount of income tax that the company will have to pay is the deferred tax liability. To calculate it, it is necessary to multiply the taxable temporary difference by the income tax rate.

Deferred tax liabilities are accounted for under Deferred Tax Liabilities (Order No. 38n of the Russian Ministry of Finance dated May 7, 2003).

Example 4

Stationery LLC calculates income tax on a cash basis. In June 2016, the company shipped products worth 100,000 rubles to buyers. The buyers paid in part for the amount of 30,000 rubles.

The taxable temporary difference amounted to RUB 70,000 (100,000 – 30,000). Income tax is calculated at a rate of 20 percent. The deferred tax liability is calculated as follows:

70,000 rubles x 20% = 14,000 rubles.

Deferred tax liability entries.

Dt 90-1 Kt 90 sub-account “Taxable temporary differences” = 70,000 rubles - the taxable temporary difference is reflected;

Dt 68 sub-account “Calculations for income tax” Kt 77 = 14,000 rubles - reflects a deferred tax liability.

When the taxable temporary differences are reduced or fully repaid, the deferred tax liabilities are offset by an entry

Dt 77 Kt 68 sub-account "Calculations for income tax" - the amount of deferred tax liability has been reduced or fully repaid.

Example 5

Let's continue the data of the previous example. In July 2016, the buyers of Stationery LLC paid off the organization in full.

Dt 90 sub-account "Taxable temporary differences" Kt 90-1 = 70,000 rubles - the taxable temporary difference is repaid;

Dt 77 Kt 68 sub-account “Calculations for income tax” = 14,000 rubles - the amount of the deferred tax liability has been repaid.

Upon disposal of an object for which a deferred tax liability is reflected, we make a posting:
Dt 77 Kt 99 - the amount of the deferred tax liability has been written off.

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When restoring the accounting of organizations, we encountered a misunderstanding of some accountants of the provisions on accounting 18\02. in connection with which we decided to write a series of articles explaining

A practical example of the calculation for determining the current income tax is in

Who applies PBU 18/02?

Reading the General Provisions section, we certainly answer this question. This PBU is applied by organizations that calculate and pay income tax. In other words, if you do not calculate and pay income tax in accordance with the law, then you do not need to apply PBU 18/02. PBU 18/02 does not apply:

• credit institutions;
• state (municipal) institutions;
• applying simplified methods of accounting, including simplified accounting (financial) reporting;

Why should PBU 18/02 be applied at all?

The answer is in this section. The application of PBU 18/02 makes it possible to reflect in accounting and financial statements the difference in tax on accounting profit (loss) from income tax formed and reflected in the income tax return. In other words, this PBU reflects in accounting a certain amount that will affect income tax in the future. As a result of different rules for accounting for income and expenses, set out in the regulatory legal acts on accounting and in the legislation on taxes and fees in the Russian Federation, there is a difference between accounting profit (loss) and profit (loss) reflected in the income tax return and formed from temporary and permanent differences, clause 3 of RAS 18/02.

SHE(deferred tax asset)-

first we recognize the expenses in accounting, and in subsequent periods in the tax. Income in tax, and later in accounting. There is a practice of using the abbreviation TNP (current income tax) and URNP (conditional income tax expense).

Reflected in the reporting:

Balance sheet: Assets:

IT(deferred tax liability)-

the opposite of she. First, we recognize expenses in tax accounting, and in subsequent periods in accounting. Income in accounting, and later in tax. Reflected in the reporting: Balance sheet: Passive:

Constant Differences

–income and expenses recognized only in accounting or only in tax accounting. They are: PNA-permanent tax assets; PNO-permanent tax liabilities; Reflected in the reporting:

temporary differences.

So, we are approaching the most “serious” moment, which always raises a lot of questions from accountants. These are temporary differences. What it is, and how to "fight" with it, we will consider in this article. Temporary differences are differences that will affect tax, increasing or decreasing it in the future. Accordingly, those differences that will increase income tax will be called taxable temporary differences, and those that will reduce income tax - deductible temporary differences. Deferred tax assets and deferred tax liabilities. Deferred tax assets (DTA) are deductible temporary differences multiplied by the income tax rate at the time DTA is recognized. When the deductible temporary differences are reduced or settled, the DHA will be reduced or fully repaid. Accounting entries: Accrual of SHE Dt09 Kt68; Repayment of SHE Dt68 Kt09. Deferred tax liabilities (ITLs) are taxable temporary differences multiplied by the income tax rate at the time DLTs are recognized As the taxable temporary differences decrease or fully recede, deferred tax liabilities will be reduced or fully settled. Accounting entries: Accrual IT Dt68 Kt77; Repayment of IT Dt77 Kt68. In the financial statements, it is allowed to reflect IT and IT is balanced (collapsed). The amount of income tax (NP) is called conditional income (expense) (UD (R)) if NP is determined from accounting profit (loss). NP formed from tax profit is equal to UD(R)-PNO+(-) SHE+(-)ONO SHE and IT are reflected in the balance sheet as non-current assets and long-term liabilities, respectively. Income tax overpayment is recorded as an asset, debt - as a liability. The income statement reflects PNO, SHE, IT and current income tax.

Income statement:

In addition, separately in the notes to the balance sheet and the income statement, the following are disclosed:

• conditional expense (conditional income) for income tax;
• permanent and temporary differences that arose in the reporting period and led to the adjustment of the conditional expense (conditional income) for income tax in order to determine the current income tax;
• permanent and temporary differences that arose in previous reporting periods, but resulted in the adjustment of the conditional expense (conditional income) for income tax of the reporting period;
• amounts of permanent tax liability (asset), deferred tax asset and deferred tax liability;
• reasons for changes in applied tax rates compared to the previous reporting period;
• the amounts of a deferred tax asset and a deferred tax liability that are written off on the disposal of an asset (sale, donation or liquidation) or type of liability.

It is a common phenomenon when accountants reflect identical transactions in accounting differently due to existing rules and objective reasons. This leads to the fact that there is an imbalance in the base, which is subject to subsequent mandatory payments to the budget. All this causes the accrual and appearance in the accounting of permanent tax liabilities. Here it is important to understand what such reporting content means, where the differences come from and what kind of posting the accountant will accrue a permanent tax liability.

General concepts

PNO is a variable that is calculated by multiplying the constant difference by the income tax rate. The prerequisites for the discrepancy are most often expenses that, from the point of view of tax accounting, are not such (penalties on fiscal payments).

There is also the concept of permanent tax liabilities or assets. This term implies the calculation of the base for taxation, which contains unrecorded income, which entails an increase or decrease in tax payments on profits in a particular period.

Both concepts cannot be identified, although their essence is common. The key difference is the calculation of the amount of profit in a specific accounting. If the accounting exceeds the tax, then this is an asset, when vice versa - a liability.

The calculation of the TIT is carried out using a simple formula: PR * NP (the current % tax rate at the time of calculation).

The constant difference (PR), which leads to the above two phenomena in reporting, is the inconsistency of income and expenses in different types of accounting, which even after a while cannot be eliminated.

At the same time, there are reported contradictions of a periodic nature. They are called a temporary difference and represent a discrepancy in reporting an expense or income in one period in fiscal accounting, and in another in financial accounting. After some time, inconsistencies will be brought to a single value and will be eliminated.

Deferred Tax Liabilities, according to IFRS, are the amounts of tax that are required to be paid in the perspective of temporary differences in relation to taxable mandatory payments to the budget.

Permanent tax liabilities arise as a result of discrepancies in reporting data

What is PNO

Financial receipts and expenses, which are the result of the economic activity of a legal entity, are perfectly reflected in accounting and tax records. Individual indicators may be concentrated in accounting in other figures than in tax accounting. Often there are inconsistencies in the initial value of assets for different types of accounting.

The ratio of tax, the calculation of which is carried out within the framework of tax accounting and within the framework of accounting, can be expressed through:

• PNA (revenues are accepted exclusively from a financial position or expenses from a fiscal position) - in fact, the profit exceeds the amount that is subject to taxation.
• PNO (income is regarded as such only from the standpoint of taxation, but at the same time from the accounting side they are not recognized as such) - means that profit is taxed in an overestimated amount in relation to that which goes on accounting. accounting.

The legislative framework

The regulation of the display of contradictions is carried out by regulation 18/02 “Accounting for income tax settlements” (PBU), which was put into effect in 2002 by order 114 of the Russian Ministry of Finance.

This NPA is the same for all business entities that, as a result of their activities, have a profit and are payers of deductions to the budget from its amounts.

The rules established by the regulation do not apply only to:

• Non-profit and credit organizations.
• budget institutions.

Small indulgences in this part are also provided for enterprises that are recognized as small - companies, firms, etc. that have the characteristics established in the Federal Law No. 209 and 156 of 2007 and 2015, respectively. They independently in their accounting policy reflect the decision on the application or non-use of this Regulation.

Equally important is the International Financial Reporting Standard (IAS) 12, which serves as the basis for local acts.

Like other forms of obligations, PNO is regulated by law

When does PNO occur?

Due to the fact that tax liabilities related to the category of permanent ones are the result of recognition of expenses as such in accounting only from a financial point of view or use in calculating tax in fiscal accounting, the transactions that lead to their occurrence are quite diverse. These are:

• Free alienation of property owned by a legal entity as an owner. Such a transaction is not subject to reflection in the report as an expense only for the tax, in the accounting department it will be listed as such. By analogy, the situation is with goods and other material values ​​that entered the balance of the office without payment, that is, for nothing. They are taken into account when calculating income tax.
• For the final year, according to the fiscal report, there is a loss, in fact, this means that the company worked "in the red" and the amount of income is less than expenses. Reducing the tax base is allowed for the entire amount of the loss within 10 years from the date of its occurrence, further accounting is not kept. As for the financial, it continues beyond this period.
• Spending that went to corporate events. In order for the funds spent to be accepted for accounting for income tax, everything must be documented with justification and be directly related to economic activity. Corporate entities do not meet such requirements and are not actually accepted for fiscal accounting. This also includes payments for voluntary medical insurance for employees, travel, advertising and entertainment expenses.
• Revaluation of a fixed asset resulting from a change in its market value. As a result of such actions, either the initial or the current price is revised (the latter is relevant for cases where the cost has already been reviewed earlier). The consequence is the recalculation of depreciation from the first day of operation of the facility. All this is relevant for accounting, but not for tax.
• Compensation payments to employees that do not follow from an employment contract or contract concluded with them (material assistance, etc.). The accounting department conducts such amounts and reflects them in the reports, but the income tax from their presence does not change.
• Sanctioned amounts (fines, penalties, etc.) that were transferred in favor of the budget.

PNO has its own characteristics of reflection in accounting

Accounting reporting and accounting

A permanent tax liability is reflected by postings in debit in the line with the same name on account 99, and on credit by 68 in the position “Calculations for income tax”.

Assets are fixed through reverse posting, in which it is required to use debit and credit for 68 and 99 accounts.

These indicators are not reflected in the balance sheet, but are subject to analysis within the framework of the “report on financial results” (line 2421). The estimated value is indicated for reference and is excluded from the calculation of the final amount of payment to the budget. At the same time, the accrued tax liability is constant in postings and always comes with a minus sign, and PNA, on the contrary.

A feature of accounting is that PNO is subject to inclusion only in accounting, fiscal accounting does not provide for the formation and fixation of permanent differences. Information about the PR is subject to interpretation and clarification in the annex to the mandatory reporting documents.

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including: permanent tax liabilities (assets) 2421 is the balance of permanent tax liabilities (assets).

In other words, this is a certain value that either increases or reduces income tax payments in the reporting period.

For the purposes of financial analysis, this value is not fundamental, since it does not affect subsequent calculations.

If with brackets, then it is entered into services with a minus.

Calculation formula (according to reporting)

Line 2421 of the income statement

standard

Not standardized

Conclusions on what a change in indicator means

If the rate is above normal

Not standardized

If the rate is below normal

Not standardized

If the index increases

positive factor

If the index decreases

Negative factor

Notes

The indicator in the article is considered from the point of view of not accounting, but financial management. Therefore, sometimes it can be defined differently. It depends on the author's approach.

In most cases, universities accept any version of the definition, since deviations in different approaches and formulas are usually within a few percent at most.

The indicator is considered in the main free service and some other services

If you see any inaccuracy, typo - also, please indicate it in the comment. I try to write as simply as possible, but if something is still not clear, you can write questions and clarifications in the comments to any article on the site.

Sincerely, Alexander Krylov,

The financial analysis:

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