1. Working with Tax Reporting
  2. Working with National Tax Process
  3. Working with RTA (Return to Accrual)
  4. Calculating RTA Deferred Tax
  5. Example Use Case for RTA Deferred Calculation

Example Use Case for RTA Deferred Calculation

See the following example use case for calculating both National and Regional:

Example: Calculating National

Return to Accrual (Deferred only) in Deferred Tax form is calculated as below for National RTA:

RTA Differences column (pre-tax) in the RTA form

So, though the RTA Differences column (pre-tax) in the above RTA form shows as 0 for Temp 1 account, Return to Accrual (Deferred Only) on Deferred Tax National form is:

P13 gross amount * Current Year Tax Rate in P13 - P12 gross amount * Current Year Tax Rate in P12 (1000 * .45 - 1000 * .35 = 100).

Return to Accrual (Deferred Only) on Deferred Tax National form

Example: Calculating Regional

Return to Accrual (Deferred only) in Deferred Tax Regional form is calculated as below:

RTA Differences column (pre-tax) in the RTA Regional form

So, though the RTA Differences column (pre-tax) in the above RTA Regional form shows as 0 for Temp 1 account, Return to Accrual (Deferred Only) on Deferred Tax Regional form is:

P13 gross amount * Current Year Tax Rate in P13 * Current Year Tax Apportionment in P13 - P12 gross amount * Current Year Tax Rate in P12 * Current Year Tax Apportionment in P12 (1000 * .2 * .15 - 1000 * .1 * .05 = 25).

Return to Accrual (Deferred Only) on Deferred Tax Regional form