Differences Between Accounting Profit And Taxable Income On The Revenue Impact Of Regulation

Taxation is the major part of national income. It is also the foundation of various public and economic infrastructure projects. Therefore ensure effective taxation is of great importance. With rapid development of economy, our country's tax regulation is developing quickly. However, with the accelerated internationalization of our accounting system, the new Accounting Principles is becoming more and more converged to international standards, which affects tax regulation. In particular, the implementation of new Income Tax principles introduced Contemporary Difference, which converted the calculation of Income Tax from Income Statement to Balance Sheet. As a result, the new principles also led to Deferred Income Tax Assets and Deferred Income Tax Liabilities, both influenced companies'financial situations and raised new challenges for tax regulation. Therefore, it is necessary for us to further study tax regulation under new Accounting Principles and make contributions to the development of national income.By focusing on accounting profit and taxable income, this article analyzes basic theories of Deferred Income Tax Assets and Deferred Income Tax Liabilities, based on which pointing out weaknesses in current tax regulation system. Besides with empirical study, this article put forward pieces of advice to improve the regulation system.This article is composed of six chapters: Chapter one is an introduction of my study backgrounds and significances. With previous research results at home and abroad, this chapter presents the general framework.Chapter two is discussed theories of both Deferred Income Tax Assets and Deferred Income Tax Liabilities, and analyzes types of Contemporary Difference and their influences on tax regulation.Chapter three is pointed out loopholes and deficiencies in our tax regulation system.Chapter four is studied effects of Contemporary Difference on a particular company's financial condition by empirical analysis.Chapter five is put forward advice on tax regulation system based on results from the empirical analysis.Chapter six makes a conclusion of the whole article and indicates its deficiencies for future study.This article is a result of many previous professional studies in the field of Contemporary Difference, from which I generates my own understanding of our country's tax regulation system. I sincerely hope this article will bring positive effects on improving our country's regulation system building.