What is deferred income tax?

There will be temporary differences when accounting and tax laws confirm enterprise income tax. Let me give a simple example (depreciation of fixed assets) to illustrate: the depreciation expense confirmed by accounting 1 year is 300,000 yuan, 200,000 yuan in the second year and 654.38+million yuan in the third year; Tax law and depreciation expense: 1 200,000 yuan per year, 200,000 yuan in the second year and 200,000 yuan in the third year; It can be seen that the total depreciation expenses confirmed by accounting and tax law are equivalent, both of which are 600,000. If the enterprise's profit without deducting depreciation expenses is 6,543.8+0,000, then in accounting, the profit after deducting depreciation is 654.38+0,000-30 = 70, and the income tax (25%) is 6,543.8+0,750. However, the depreciation confirmed by the tax law is only 200,000 yuan, so the income tax (25%) should be (100-20) × 25% = 200,000 yuan: the tax law recognizes 25,000 yuan more than accounting. How should this be handled? Adjusted by deferred income tax: income tax expense in the first year (100-30) × 25% =175000 ← balance of accounting deferred income tax assets 20- 175000← back loan: bank deposit (1092;). ×25% = 200000← The second year of the tax law. In fact, we can also understand the above entry in this way: the first year is borrowed: income tax expenses (100-30 )× 25% =175000 ← accounting other deposits-tax bureau 20-/kloc-0. Backward loan: bank deposit (100-20) × 25% = 200,000 ← from the second year tax law: loan: income tax expense (100-20) × 25% = 200,000 ← from accounting loan: bank deposit (. In addition, a clearer but more difficult explanation is that deferred income tax assets are taxes that should not be recognized in the current accounting, but are required to be recognized in the tax law. The money is paid in the current period, but it should not be included in the current expenses, and should be deferred and included in the expenses later. Deferred income tax liabilities are taxes that should be recognized in the current accounting, but are not required to be recognized in the tax law for the time being. This money has not been spent in the current period, but it should be included in the current expenses and actually spent in the future. This is a conceptual explanation, and the specific calculation is still very troublesome. You should read the examples in Application Guide II. Main accounting treatment of deferred income tax liabilities. On the balance sheet date, the deferred income tax liabilities confirmed by the enterprise shall be debited to the subject of "income tax expenses-deferred income tax expenses" and credited to this subject. If the due balance of deferred income tax liabilities on the balance sheet date is greater than its book balance, it shall be confirmed according to the difference, and the account of "income tax expense-deferred income tax expense" shall be debited and credited to this account; If the due balance of deferred income tax liabilities on the balance sheet date is less than its book balance, the opposite accounting entry will be made. Deferred income tax liabilities related to transactions or events directly included in owners' equity shall be debited to the title of "capital reserve-other capital reserve" and credited to this title. If the recorded value of assets and liabilities obtained in business combination is different from that in tax basis, resulting in temporary differences in taxable income, deferred income tax liabilities shall be confirmed on the purchase date, and goodwill shall be adjusted at the same time, and the account shall be debited to the account such as "goodwill" and credited to this account.