How to determine trực tiếp bóng đá hôm nay euro value of deductible temporary differences for corporate income tax in Vietnam?

Vietnam: What doesa deductible temporary difference for corporate income tax mean?

trực tiếp bóng đá hôm nay euro deductible temporary difference for corporate income tax is stipulated in Section 3 of Accounting Standard No. 17, promulgated and published according toDecision 12/2005/QD-BTC. Specifically:

03. trực tiếp bóng đá hôm nay euro terms in this Standard are understood as follows:

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Temporary Difference: Is trực tiếp bóng đá hôm nay euro difference between trực tiếp bóng đá hôm nay euro carrying amount of an asset or liability in trực tiếp bóng đá hôm nay euro Balance Sheet and its tax base. Temporary differences can be:

a) Taxable temporary differences: These are temporary differences that lead to taxable income in determining taxable corporate income in trực tiếp bóng đá hôm nay euro future when trực tiếp bóng đá hôm nay euro carrying amounts of trực tiếp bóng đá hôm nay euro related assets or liabilities are recovered or settled; or

b) Deductible temporary differences: These are temporary differences that generate amounts deductible in determining taxable corporate income in trực tiếp bóng đá hôm nay euro future when trực tiếp bóng đá hôm nay euro carrying amounts of trực tiếp bóng đá hôm nay euro related assets or liabilities are recovered or settled.

trực tiếp bóng đá hôm nay euro tax base of an asset or liability: Is trực tiếp bóng đá hôm nay euro value assigned to an asset or liability for corporate income tax purposes.

Corporate income tax expense includes current income tax expense and deferred income tax expense. Corporate income tax income includes current income tax income and deferred income tax income.

Thus, trực tiếp bóng đá hôm nay euro deductible temporary difference for corporate income tax comprises temporary differences that generate deductible amounts in future taxable income determination when trực tiếp bóng đá hôm nay euro carrying amounts of related assets or liabilities are recovered or settled.

Vietnam: What does a deductible temporary difference for corporate income tax mean?(Image from trực tiếp bóng đá hôm nay euro Internet)

When must deferred tax assets be recognized for all deductible temporary differences in corporate income tax in Vietnam?

According to Section 13 of Accounting Standard No. 17, promulgated and published according toDecision 12/2005/QD-BTC, it is stipulated as follows:

Deductible Temporary Differences

13. Deferred tax assets should be recognized for all deductible temporary differences when it is probable that taxable profits will be available in trực tiếp bóng đá hôm nay euro future to use these deductible temporary differences, except for deferred tax assets arising from trực tiếp bóng đá hôm nay euro initial recognition of an asset or liability from a transaction that does not affect accounting profit or taxable profit (tax loss) at trực tiếp bóng đá hôm nay euro transaction time.

14. trực tiếp bóng đá hôm nay euro basis for recognizing a liability is trực tiếp bóng đá hôm nay euro expectation that its carrying amount will be settled in trực tiếp bóng đá hôm nay euro future by trực tiếp bóng đá hôm nay euro enterprise sacrificing economic benefits. When economic benefits are sacrificed, part or all of their value may be deductible from taxable profit in trực tiếp bóng đá hôm nay euro period following trực tiếp bóng đá hôm nay euro period in which trực tiếp bóng đá hôm nay euro liability is recognized. In such cases, a temporary difference exists between trực tiếp bóng đá hôm nay euro carrying amount of trực tiếp bóng đá hôm nay euro liability and its tax base. Thus, a deferred tax asset arises concerning corporate income taxes that will be recovered in trực tiếp bóng đá hôm nay euro future when part of that liability is allowed to be deducted in determining taxable profit.

Deferred tax assets must be recognized for all deductible temporary differences in corporate income tax, when it is probable that taxable profits will be available in trực tiếp bóng đá hôm nay euro future to utilize these deductible temporary differences,

Except for deferred tax assets arising from trực tiếp bóng đá hôm nay euro initial recognition of an asset or liability from a transaction that does not affect accounting profit or taxable profit (tax loss) at trực tiếp bóng đá hôm nay euro transaction time.

How to determine trực tiếp bóng đá hôm nay euro value of deductible temporary differences for corporate income tax in Vietnam?

According to Clause 6.3 of Subsection 6 Part A Section 1Circular 20/2006/TT-BTCit is stipulated as follows:

I - GUIDELINES FOR ACCOUNTING STANDARD “CORPORATE INCOME TAX”

A - General Provisions

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6 – Determination of “Temporary Differences”

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6.3 – Determination of “Deductible Temporary Differences”:

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(2) Determination of trực tiếp bóng đá hôm nay euro value of deductible temporary differences:

+ For assets: A deductible temporary difference is trực tiếp bóng đá hôm nay euro difference where trực tiếp bóng đá hôm nay euro carrying amount of trực tiếp bóng đá hôm nay euro asset is less than its tax base.

+ For liabilities: A deductible temporary difference is trực tiếp bóng đá hôm nay euro difference where trực tiếp bóng đá hôm nay euro carrying amount of trực tiếp bóng đá hôm nay euro liability exceeds its tax base.

(3) Some scenarios leading to deductible temporary differences:

+ Deductible temporary differences arising from revenue recognition in future years while trực tiếp bóng đá hôm nay euro income tax is accounted for in trực tiếp bóng đá hôm nay euro current year.

Example: In cases where a company receives advance payments for leasing real estate or infrastructure over many years. This upfront revenue is recognized in trực tiếp bóng đá hôm nay euro Income Statement spread across trực tiếp bóng đá hôm nay euro leasing period, but trực tiếp bóng đá hôm nay euro company pays corporate income tax on trực tiếp bóng đá hôm nay euro entire advance payment in trực tiếp bóng đá hôm nay euro year it is received.

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Therefore, according to trực tiếp bóng đá hôm nay euro regulation above, trực tiếp bóng đá hôm nay euro value of deductible temporary differences for corporate income tax is determined as follows:

[1] For assets: A deductible temporary difference is trực tiếp bóng đá hôm nay euro difference where trực tiếp bóng đá hôm nay euro carrying amount of trực tiếp bóng đá hôm nay euro asset is less than its tax base.

[2] For liabilities: A deductible temporary difference is trực tiếp bóng đá hôm nay euro difference where trực tiếp bóng đá hôm nay euro carrying amount of trực tiếp bóng đá hôm nay euro liability exceeds its tax base.