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 Sample list of Permanent Difference accounts](img/permgstotal.gif)
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 Current Tax Accounts hierarchy](img/currenttax.gif)
Table 3-7 High-level explanation of the account structure used for the National Current Provision
Account | Description | Method data is entered | Entered as PreTax or TaxEffected | Applies to National, Regional, or Both | Comment |
---|---|---|---|---|---|
NIBT | Net Income Before Tax | Tax Automation | Pre-Tax | Both | |
|
Total book adjustments to NIBT | Tax Automation or manually entered | Pre-Tax | Both | The total Book adjustment consists of individual adjustment detail accounts |
|
Total book reclass to NIBT | Tax Automation or manually entered | Pre-Tax | Both | The total Reclass adjustment consists of individual reclassification detail accounts |
NIBTAdjusted | NIBT Adjusted | Calculated based on account aggregation | |||
|
Permanent Differences (GAAP to Stat) | Tax Automation or manually entered | Pre-Tax | Both | The total Permanent Difference consists of individual Perm detail accounts |
|
Temporary Differences (GAAP to Stat) | Tax Automation or manually entered | Pre-Tax | Both | The total Temporary Difference consists of individual Temp detail accounts |
NIBTLS | Local Statutory Net Income Before Tax | Calculated based on account aggregation | |||
|
Permanent Differences (Stat to Tax) | Tax Automation or manually entered | Pre-Tax | Both | The total Permanent Difference consists of individual Perm detail accounts |
|
Temporary Differences (Stat to Tax) | Tax Automation or manually entered | Pre-Tax | Both | The total Temporary Difference consists of individual Temp detail accounts |
|
Deductible regional income taxes | Calculated based on account aggregation | Pre-Tax | Both | The amount calculated in Regional Provision, which can be deducted for National tax |
|
Other deductible income taxes | Manually entered | Pre-Tax | Both | Other income tax amount that is deductible for National Provision |
|
Deductible Income Taxes | Calculated based on account aggregation | Total Deductible Income Tax is the sum of Deductible Regional Income Taxes and other deductible income taxes | ||
TaxableIncomeBeforeLoss | Taxable Income Before Loss | Calculated based on account aggregation | |||
|
Tax Losses - Carryforward Automated | Manually entered | Pre-Tax | National | The amount manually entered for tax loss |
|
Capital Losses - Carryforward Automated | Manually entered | Pre-Tax | National | The amount manually entered for Capital Losses |
|
Charitable Contributions - Carryforward Automated | Manually entered | Pre-Tax | National | The amount manually entered for Charitable Contributions |
|
National Tax Losses - Carryforward Automated | Manually entered | Pre-Tax | National | The amount manually entered for tax loss |
|
Total National Tax Losses - Carryforward Automated | Calculated based on account aggregation | Pre-Tax | Total tax losses | |
|
Special tax deductions | Manually entered | Pre-Tax | Both | |
TaxableIncomeAfterLoss | Taxable Income After Loss | Calculated based on account aggregation | |||
|
National Tax rate | Manually entered | N/A | National | The tax rate used to calculate the national tax expense |
CurrentTaxTI | Current Tax on Taxable Income | Calculated based on rules | The system calculates the tax amount by applying the tax rate to the taxable income after loss. | ||
|
Total Tax Credits | Manually entered | Tax-effected | National | Total Tax Credits consists of individual tax credit detail accounts |
CurrentTaxReturn | Current Tax Return | Calculated based on account aggregation | |||
|
Total additional current provision - source | Tax Automation or manually entered | Tax-effected | National | Total Tax Adjustment to Current Provision consists of individual tax detail accounts |
|
Total additional current provision - manual | Manually entered | Tax-effected | National | Total Tax Adjustment to current provision consists of individual tax detail accounts |
|
Total additional current provision - Calculated | Calculated based on rules | Tax-effected | National | Total calculated amounts include adjustments for Return-to-Accrual, SFAS123RRTA and SFAS123RProv |
|
Reporting Currency adjustments | Manually entered | Tax-effected | National | This amount represents any manual adjustment due to reporting currency differences. This amount is not translated. |
CurrentTaxExpense | Current Provision - National | Calculated based on account aggregation |