1. User's Guide
  2. National Tax Process
  3. Current Provision

Current Provision

The current provision calculation is as follows:

  • NIBT—Automatically populated from the income statement loaded into the system plus/minus

  • NIBT Total Book Adjustment—Usually manual adjustments or automated amounts

  • NIBT Total Book Reclass—Usually manual adjustments or automated amounts

  • Net Income Before Tax— Also the starting point for the effective tax rate report. The following items are then added to/subtracted from this balance:

  • Total Permanent Differences (GAAP to Stat)—A combination of automated and manual amounts plus/minus

  • Total Temporary Differences (GAAP to Stat)—A combination of automated and manual amounts equals

  • Local Statutory Net Income Before Tax—Plus/minus

  • Total Permanent Differences (Stat to Tax)—A combination of automated and manual amounts plus/minus

  • Total Temporary Differences (Stat to Tax)—A combination of automated and manual amounts equals

  • Deductible Income tax—A combination of automated and manual amounts, depending on the nature of the deductible taxes equals

  • Taxable Income Before Loss—Plus/minus

  • Tax Losses—Net Operating Loss—Manual input in the current provision input schedules plus/minus

  • Special Deductions—Manual inputs for dividends received deduction or other items equals

  • Taxable Income—Multiplied by

  • National Tax Rate—Current year equals

  • Current Tax on Taxable Income—Plus/minus

  • Tax Credits—Plus/minus

  • Additional Provision Items—A combination of automated and manual adjustments on a tax-effected basis equals

  • Current Provision

The form contains the following members in the columns (across):

  • CYSys—Current Year System—Current year book-tax difference automated in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are automated and impact the current tax expense.

  • CYAdj — Current Period Adjustment—Current year book-tax difference adjustments input in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are manually input and impact the current tax expense.

  • CY—Current Period Total—The sum of CYSys and CYAdj.