Owing to the long-term nature of the real estate enterprise's own operations in production construction, taxes and fees are paid differently from other enterprises. The real estate development enterprise may pre-sale the house when the work is not completed, and a pre-sale fee is required for the advance sale of the house. So what should we do with the accounting entries for the advance tax on real estate? The mini-authors have already sorted out the contents。
Owing to the long-term nature of the real estate enterprise's own operations in production construction, taxes and fees are paid differently from other enterprises. The real estate development enterprise may pre-sale the house when the work is not completed, and a pre-sale fee is required for the advance sale of the house. So what should we do with the accounting entries for the advance tax on real estate? The mini-authors have already sorted out the contents。
Accounting entries for advances to real estate
The new eas and related provisions do not make clear the treatment of pre-collective income tax and turnover tax on real estate transfers and sales by real estate enterprises and their additional accounting, so that there are different approaches in practice。
(i) accounting treatment of income tax advances
The accounting treatment of income tax advances for " advance receipts " in substantive processing is generally of two kinds:
(1) the general method of accounting for the income tax of real estate development enterprises is income tax based on the deduction of charges and taxes for the period in which the advance payment is made. The accounting entries are as follows:
Leverage: tax due — income tax payable
Loans: bank deposits
Upon completion of the real estate development product, the enterprise shall calculate the realized income in a timely manner, together with the required carry-over costs, and the tax adjusted income tax shall be reflected in the profit statement:
Borrowed: income tax charges
Credit: taxable — income taxable
In calculating the difference between the income tax paid in advance and the income tax due, the income tax is paid in part:
Borrowed: income tax charges
Credit: taxable — income taxable
Leverage: tax due — income tax payable
Loans: bank deposits
Income taxes corresponding to advances received that do not meet the recognition of income are reflected in the tax payable column and are expressed in negative figures。
(2) treatment of income tax accounting
(a) if the effect of the amount of income tax payable for future periods is recognized by real estate enterprises in the accounting of income tax on the basis of temporary differences subject to creditable deductions, income taxes paid in advance shall be recognized as deferred income tax assets and, at the same time as (1) at the time of payment, income taxes paid in respect of advances received at the end of the year for which the conditions for income recognition have not been met have been transferred from “payable — income tax due” to “deferred income tax assets — income tax paid in advance for the sale of premises”, as shown below;
Borrowing: deferred income tax assets - advance income tax on pre-sale housing
Credit: taxable — income taxable
(ii) prepayment of turnover tax and additional accounting treatment
Prepayment of turnover tax and its accompanying accounting treatment is generally relatively simple, with prepayment of turnover tax and surcharge:
Borrowing: tax due — turnover tax due
— subject to city maintenance tax
— additional to education due
Loans: bank deposits
At the end of the year, a “business tax and additional” accounting entry is made for the current year's sales proceeds of “advance collection” transfers that meet the requirements for revenue recognition, as incurred:
Borrowing: turnover tax and surcharges
Credit: tax due — turnover tax due
— subject to city maintenance tax
— additional to education due
The transfer of paid taxes to the current year's profits is reflected in the operating tax on the profit statement and in the additions to the income recognition condition, as well as in the balance sheet's “advance collections” balance sheet, which is charged as a cost under the tax law, and the accounting and taxation differences. Some enterprises recognize deferred income tax liabilities, while others are not treated and are reflected in the tax payable column, which is negative。
These are the details of what you can do to make up the accounting entries for pre-payment payments for real estate, which you must also know about. Those who have doubts about, can consult with online teachers to answer questions, and those who want to learn more about accounting can scan the upper right two-dimensional code, add a public sign, and receive surprise benefits free of charge。
