Company tax

[Angela_Tjitombo]

Hi how do i incorporate company tax into my profit and loss

[Joe91]

If you search the forum, you will find a few entries explaining how to do this

This is just one example Dividends and Corporation Tax Expenses Sub Section on P&L - #16 by Brucanna

[Angela_Tjitombo]

thanks

[Bokamoso_Mo]

Hello Angela, I am struggling with the same thing did u get assistance?

[Angela_Tjitombo]

Not really let me try what they suggest and two back to you

[Bokamoso_Mo]

I am looking at few comments but I haven’t found anything yet, some suggests journal entries,but I want the account and the company tax % setup and calculates itself on the P/L statement

[Angela_Tjitombo]

yes that’s also what I am looking for

[Angela_Tjitombo]

Can anyone help us in these regard someone who has done it before

[Patch]

Manager only calculates VAT/GST, not income tax for individuals or companies or employees.

I looked at using a custom tax code but it was frowned on and didn’t work as expected

Capital sub account tax code

I think there is a bug when using tax codes and capital sub accounts. Using v19.7.24 desktop on Windows 7. An example I would like to use Journal entry from “Retained earnings” to “Capital Accounts” → “Member 1” → “Share of profit” - tax code Changing the tax code makes no difference. 100% funds are transferred to “Share of profit”, none going to any tax code directed account. An example showing an issue but I don’t think I need to use currently “Receipts & Payments” → “New Receipt” …

Australian SMSF member contributions

All journal entries above put 15% in the “Tax income liability” account. An equivalent way of doing this by using a tax code such as [1%20Tax%20code] The tax can then be taken out during the distribution of profit just by applying the tax code [1%20Distribution%20profit%20-%20tax%20codes] Instead of [19%20Distribution%20profit] Similarly when adding a members concessional contribution [1%20member%201%20Concessional%20JE%20-%20tax%20code] instead of [12%20member%201%20Concessional%2…

[Angela_Tjitombo]

im confused you are talking about members contribution and I want on company tax?

[Patch]

A quantity can only be calculated when there is something to base the calculation on.

The example given was distribution of profit post tax to share holders. In that case there is a clear input to the tax provisioning, the amount distributed to the share holder.

In employee payroll tax calculation there is also a clear input, the employee’s gross pay

In contrast for income tax calculation at the end of a financial year, the input is all of your business accounts with an understanding of all of your tax regulations to interpret your businesses accounting records. That is something accounting software provides support for but does not generate.

[Patch]

@Angela_Tjitombo

how do i incorporate company tax into my profit and loss

• Have a before tax total, an expense account for tax and then an after tax total.
• Tax provisioning transfers funds from the expense account to a “Tax provision” liability account. A manual process based on your estimate of income tax for the period.
• When tax is actually paid an allocation to the Tax provision account is made to zero it at the end of that financial year, the balance taken from the tax expense account.

See

What account does corporation tax go under?

I created a new account in chart of accounts called Corporation Tax and set it as a liability so it does not show up under profit and loss for tax purposes as its not an expense. Is this the correct procedure? I was not sure whether I should use the existing account called Tax Payable as that one seems to be calculating the VA and I don’t want to mess up the VAT Return by putting Corporation Tax into Tax payable.

How to account for corporate tax

First, create two accounts in your Chart of Accounts: Income Tax Payable under Liabilities Income Tax Expense under Expenses Then create new journal entry to account for income tax expense, let’s say the income tax is $1,000 Debit $1,000 to Income Tax Expense account Credit $1,000 to Income Tax Payable account This will bring your $1,000 into Profit & Loss Statement. When you pay income tax to tax authority, it’s simple cash payment transactions that will have to be categorized as Inc…

Handing income tax

Just create new expense account in chart of accounts called Income tax expense Then at the end of the year, you would make a journal entry where you credit income tax liability and debit income tax expense.

Tax for for PSI business

I assume you are a sole trader also. The official response by most accountants is personal tax is not a business expense so does not belong in your manager business. The problem with that logic is income tax is a major bill for any profitable business so budgeting for it is imperative, particularly if income is varying. Doing so ensures funds are allocated up to 18 months earlier than just waiting till the tax department sends a bill. A way to do it is modify your chart of account as shown […