Deferred Tax

Differences between accounting profit and taxable profit often give rise to deferred tax positions. In this course you get to grips with calculating, processing and presenting them, so that you avoid additional tax assessments and keep the annual accounts accurate.

Description

Do you deal with differences between business profit and taxable profit in your work? If so, you are almost certain to encounter deferred taxes: future tax liabilities or receivables arising from, for example, depreciation differences, untaxed increases in value or losses available for offset. A complex but indispensable part of the annual accounts and tax reporting.

In this course you gain a firm grasp of how deferred tax positions arise and how to calculate, process and present them. On day 1 you work on the financial and tax fundamentals: you learn the difference between temporary and permanent differences, between deferred tax assets and deferred tax liabilities, and you practise with calculations, entries and journal postings. The influence of fiscal unities, revaluations and carry-forward losses is also covered.

Day 2 focuses on financial reporting. You apply the current reporting rules (RJ 272, RJ 252 and IFRS/IAS 12), work on the valuation and write-down of deferred tax positions and practise correct presentation in the financial statements. Using practical cases, you discuss common pitfalls from audit practice, so that you recognise and avoid them in your own work.

You go home with a set of practical tips that you can apply straight away in audits, file documentation and communication with the tax adviser or the Dutch Tax Administration.

Topics

The following topics, among others, are covered during this course:

Day 1: The basics and the calculation side

• What is deferred tax?
• Temporary differences versus permanent differences
• Deferred tax liabilities and deferred tax assets
• Practical examples: how do deferred tax items arise?
• Calculating deferred tax
• Processing deferred tax correctly in entries and journal entries
• The influence of fiscal unities, revaluations and carry-forward losses

Day 2: Financial reporting, tax legislation and in-depth topics

• Tax legislation: how do you correctly apply RJ 272, RJ 252 and IFRS (IAS 12)?
• Valuation and write-down of deferred tax positions
• Tax position and presentation in the financial statements
• Practical case: processing deferred tax items correctly in the annual accounts
• Common mistakes and points of attention from audit practice. And how to avoid them

Result

After this course you will know exactly what deferred taxes are and when a deferred tax position arises. You will recognise the difference between deferred tax assets and liabilities, and between temporary and permanent differences. You will calculate deferred tax positions and process them correctly in the bookkeeping, journal entries and annual accounts.

You apply the current reporting rules (RJ 272, RJ 252 and IAS 12 under IFRS) and know the principles for valuation and write-downs. This helps you avoid additional tax assessments and penalties, and deliver the right information for both tax and business purposes.

You will also be able to explain the impact of deferred taxes in an understandable way to clients, colleagues or the board. The practical tips you take away can be applied immediately in auditing, file documentation and communication with the tax adviser or the Tax Administration.

Target audience

The Deferred Tax course is intended for anyone whose work involves financial reporting and who wants to expand their knowledge of deferred tax positions. Think of (assistant) accountants, tax specialists and tax advisers, financial administration staff, controllers, (holding company) administrators with experience of financial statements, and CFOs and finance managers.

Teaching method

You take the Deferred Tax course in a small group, so there is plenty of room for your questions and practical situations. An experienced trainer from the field takes you through theory, worked examples and concrete cases from the financial statements.

You alternate short explanations with exercises in which you calculate, post and process deferred tax positions yourself. Using practical examples, you discuss how to apply RJ 272, RJ 252 and IAS 12, and which pitfalls you encounter in audit practice. In this way you link the theory directly to your own work.

You receive course materials that you can continue to use as a reference work after the course. On completion you receive a certificate of participation.

Prior knowledge

You do not need any specific prior knowledge. It is useful, however, if your work already involves financial statements, financial administration or tax reporting. That way you will recognise the practical examples more easily and can apply what you have learned straight away.

Comments

This course offers in-depth insight into deferred tax and its application in financial reporting. The programme covers both the computational and the tax aspects, and offers practical examples and tips for immediate application. Prepare yourself for better tax planning and avoid additional assessments and penalties.

In-company

Would you like to organise this training for a whole group or several groups? This can be cost-effective. For example, we can tailor the content entirely to your organisation, and training a whole group is also cheaper.

Are you looking at large numbers of participants or a complete academy? That involves a great deal. Consider planning and communication, for example, or identifying and agreeing the objectives and content of the training. Or differences in level, feedback mechanisms and safeguarding. Fortunately, Learnit has extensive experience in this field (more than 25 years) and we are happy to help you through this process.

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Language

The training is given in Dutch as standard. The trainer has a good command of English. English-language course material can be used. With a minimum enrolment of 3 participants, the training can also be given entirely in English.