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In these times we are engaged with year-end 2015. This fiscal closing of 2015 is the first carried out with the new criteria contained in the Law 27/2014, of November 27, corporation tax (LIS) and Royal Decree 634/2015, of July 10, approving the Corporation Tax Regulation (RIS) is approved, so it seems appropriate to present a case in which the problem of this closure is described.
From the standpoint of accounting, both the NRV 13th General Accounting Plan as the NRV 15th General Accounting Plan for SMEs, are consistent in applying for the accounting of income tax method of debt based on the balance sheet and this same sense pronounces the Draft Resolution of the Institute of Accounting and Auditing setting standards for registration, evaluation and preparation of the annual accounts for the accounting for income tax dictate.
Thus, you must register the tax effect of temporary differences whenever they have an impact on the future taxation of the company, and the application of prudence in recognition of deferred tax assets.
The concept of temporary difference is the difference in the balance sheet value of assets and liabilities according to accounting and tax regulations. But from a practical standpoint, we know that the temporary differences consist of:
- The old temporary differences (differences in income and expenses from an accounting point of view and prosecution, and are compensated in the future)
- Expenses and income recognized directly in equity, such as subsidies and adjustments for changes in value.
- Differences arising on the valuation of assets and liabilities in business combinations.
- Other differences that from the beginning the assets and liabilities have a different assessment from the point of view accounting and tax, such as non-commercial exchanges.
The first conclusion we arrived with the implementation of the new LIS is that on one hand the increase in permanent and temporary differences between accounting and taxation occurs primarily by positive adjustments, and secondly the emergence of new minoraciones (deductions) of the tax base and a reduction of the nominal tax rate.
Well, we will discuss some differences between accounting and taxation for closing 2015 with a complete case study, as well as new reductions for the tax base established by the new Corporate Tax Act 2015.
In the case study, we will see the application of new reductions for the Taxable Base Capital Reserve and Reserve Equalization.
From the standpoint of accounting, both the NRV 13th General Accounting Plan as the NRV 15th General Accounting Plan for SMEs, are consistent in applying for the accounting of income tax method of debt based on the balance sheet and this same sense pronounces the Draft Resolution of the Institute of Accounting and Auditing setting standards for registration, evaluation and preparation of the annual accounts for the accounting for income tax dictate.
Thus, you must register the tax effect of temporary differences whenever they have an impact on the future taxation of the company, and the application of prudence in recognition of deferred tax assets.
The concept of temporary difference is the difference in the balance sheet value of assets and liabilities according to accounting and tax regulations. But from a practical standpoint, we know that the temporary differences consist of:
- The old temporary differences (differences in income and expenses from an accounting point of view and prosecution, and are compensated in the future)
- Expenses and income recognized directly in equity, such as subsidies and adjustments for changes in value.
- Differences arising on the valuation of assets and liabilities in business combinations.
- Other differences that from the beginning the assets and liabilities have a different assessment from the point of view accounting and tax, such as non-commercial exchanges.
The first conclusion we arrived with the implementation of the new LIS is that on one hand the increase in permanent and temporary differences between accounting and taxation occurs primarily by positive adjustments, and secondly the emergence of new minoraciones (deductions) of the tax base and a reduction of the nominal tax rate.
Well, we will discuss some differences between accounting and taxation for closing 2015 with a complete case study, as well as new reductions for the tax base established by the new Corporate Tax Act 2015.
In the case study, we will see the application of new reductions for the Taxable Base Capital Reserve and Reserve Equalization.
