Current Provision

The Current Provision (CurrentTaxExpense) account hierarchy structure contains all tax Parent accounts to be used for Current Provision calculations. The accounts for total Permanent Differences and Temporary Differences are included in the structure, as well as the total Tax Credits accounts and additional Current Provision accounts. You should include applicable tax accounts (for example, permanent, temporary differences) as required.

The account hierarchy structure setup for Current Provision below is system-defined. You can replace parents of base permanent and temporary difference accounts, but not the ultimate parent for that section, such as GAAP to Stat (for example, PermGSTotal), or Stat to Tax

For example, parent account PermGSTotal (Total Permanent Differences GAAP to Stat) consists of individual Permanent Difference account entries. Three Permanent Difference detail accounts (*) are included as part of the sample tax application as examples.

Sample list of Permanent Difference accounts

You should replace these accounts with your specific Permanent Difference accounts. You can add Permanent Difference account entries to the account structure. See Adding a Permanent Difference (GS or ST) or a Regional Account.

Current Tax Accounts hierarchy

Table 7. High-level explanation of the account structure used for the National Current Provision

AccountDescriptionMethod data is enteredEntered as PreTax or TaxEffectedApplies to National, Regional, or BothComment
NIBTNet Income Before TaxTax AutomationPre-TaxBoth 

NIBTBA

Total book adjustments to NIBTTax Automation or manually enteredPre-TaxBothThe total Book adjustment consists of individual adjustment detail accounts

NIBTRA

Total book reclass to NIBTTax Automation or manually enteredPre-TaxBothThe total Reclass adjustment consists of individual reclassification detail accounts
NIBTAdjustedNIBT AdjustedCalculated based on account aggregation   

PermGSTotal

Permanent Differences (GAAP to Stat)Tax Automation or manually enteredPre-TaxBothThe total Permanent Difference consists of individual Perm detail accounts

TempGSTotal

Temporary Differences (GAAP to Stat)Tax Automation or manually enteredPre-TaxBothThe total Temporary Difference consists of individual Temp detail accounts
NIBTLSLocal Statutory Net Income Before TaxCalculated based on account aggregation   

PermSTTotal

Permanent Differences (Stat to Tax)Tax Automation or manually enteredPre-TaxBothThe total Permanent Difference consists of individual Perm detail accounts

TempSTTotal

Temporary Differences (Stat to Tax)Tax Automation or manually enteredPre-TaxBothThe total Temporary Difference consists of individual Temp detail accounts

DeductIncTaxReg

Deductible regional income taxesCalculated based on account aggregationPre-TaxBothThe amount calculated in Regional Provision, which can be deducted for National tax

DeductIncTaxOther

Other deductible income taxesManually enteredPre-TaxBothOther income tax amount that is deductible for National Provision

DeductIncTaxTotal

Deductible Income TaxesCalculated based on account aggregation  Total Deductible Income Tax is the sum of Deductible Regional Income Taxes and other deductible income taxes
TaxableIncomeBeforeLossTaxable Income Before LossCalculated based on account aggregation   

TaxLoss0001CFS

Tax Losses - Carryforward AutomatedManually enteredPre-TaxNationalThe amount manually entered for tax loss

TaxLoss0002CFS

Capital Losses - Carryforward AutomatedManually enteredPre-TaxNationalThe amount manually entered for Capital Losses

TaxLoss0003CFS

Charitable Contributions - Carryforward AutomatedManually enteredPre-TaxNationalThe amount manually entered for Charitable Contributions

TaxLossesCFS

National Tax Losses - Carryforward AutomatedManually enteredPre-TaxNationalThe amount manually entered for tax loss

TaxLossesCFSTotal

Total National Tax Losses - Carryforward AutomatedCalculated based on account aggregationPre-Tax Total tax losses

TaxSpecialDeductions

Special tax deductionsManually enteredPre-TaxBoth 
TaxableIncomeAfterLossTaxable Income After LossCalculated based on account aggregation   

Tax Rate

National Tax rateManually enteredN/ANationalThe tax rate used to calculate the national tax expense
CurrentTaxTICurrent Tax on Taxable IncomeCalculated based on rules  The system calculates the tax amount by applying the tax rate to the taxable income after loss.

TaxCreditTotal

Total Tax CreditsManually enteredTax-effectedNationalTotal Tax Credits consists of individual tax credit detail accounts
CurrentTaxReturnCurrent Tax ReturnCalculated based on account aggregation   

CurrentAddtlSrcTotal

Total additional current provision - sourceTax Automation or manually enteredTax-effectedNationalTotal Tax Adjustment to Current Provision consists of individual tax detail accounts

CurrentAddtlManualTotal

Total additional current provision - manualManually enteredTax-effectedNationalTotal Tax Adjustment to current provision consists of individual tax detail accounts

CurrentAddtlCalcTotal

Total additional current provision - CalculatedCalculated based on rulesTax-effectedNationalTotal calculated amounts include adjustments for Return-to-Accrual, SFAS123RRTA and SFAS123RProv

CurrentFXAdj

Reporting Currency adjustmentsManually enteredTax-effectedNationalThis amount represents any manual adjustment due to reporting currency differences. This amount is not translated.
CurrentTaxExpenseCurrent Provision - NationalCalculated based on account aggregation