Income Tax Differences Coordination Research Under The Independent Tax Accounting Model

Under the background of accounting standards'international convergence, China promulgated 38 specific standards and a basic one in 2006 and it is performed in the listed companies in 2007. The promulgation of new accounting standards makes China converge with Internation, but it also makes pre-tax income difference widen further. The changes of accounting standards, accounting methods and principles generate much impact on the accounting profits and taxable income. The differences need further coordination. Tax accounting's independent trend is increasingly clear. A new round of tax reform is carrying out, which is necessary to fully consider Chinese actual economic situation and the continuity of policies, laws and pay attention to the coordination of accounting standards and income tax in the process of foreign-funded and funded enterprises merger. It becomes an important issue to resolve the tax-collection and management and accounting work urgently.As Chinese marketing economic system continuously improved and established, the difference is objective and expands further. This is the improvement of accounting system and tax law. It is not only conducive to tax-collection and management, but also guarantee the quality of accounting information and simplify accounting procedures, improve accounting and tax work efficiency to understand and handle the differences.Based on the premise of an independent tax accounting model, the article introduces the basic theory of tax accounting at first, then demonstrates the necessity of accounting-tax separation model in China. On the basis to do a cost-benefit analysis on income-tax difference coordination. With the new accounting standards issued by Finance Ministry in 2006 and the ongoing tax reform to the new income tax, the article analyse the coordination of income-tax differences as an example: analyse the new accounting standards'major changes and aggregate income tax differences and the new tax reform amendment on difference and the new income tax returns for detail. Finally the article carrys out the income tax difference coordination measure: to establish Tax Accounting.