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The CIT Return can be printed, and the printed document reflects the structure defined in the template, with all amounts populated automatically. This ensures that the printed version matches the system-generated return.
5. Tax Losses and Limited Expenses
Certain tax losses and expenses are subject to legal limits and may be carried forward to future periods. For example, interest expenses can be deferred for up to ten years. Reports in the Taxes section track these items, showing the period of origin, carry-forward expiration, and amounts used or available for future periods. Tax losses are similarly monitored to track utilization over time.
If a tax loss exists, other expenses can be generated based on the CIT Return per registered tax laws. Users can select the applicable CIT rate, and the system calculates deferred taxes using this rate rather than the standard statutory rate. An Other Expenses transaction is then created, recognizing the expenses corresponding to deferred taxes, which can be adjusted in future periods.
6. Tax Transactions and Prepayments
The Tax Transaction Changes section allows generating tax transactions based on the final CIT Return. These transactions recognize the calculated tax as an expense and as a payable to the government.
In addition, the system supports prepayments of taxes and pre-estimated taxes. Estimated taxes can be allocated to an estimated account and later offset against the final tax calculation.
While these activities are typically performed once per year and are largely manual, the system simplifies the process by automatically retrieving amounts from the CIT Return. All transactions can be tracked within the system for reporting and reconciliation purposes.
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