Tax accounting is an information system linked to tax obligations.
Accounting is a science (since it produces systematic and verifiable knowledge) and a technique (it allows processing and applying data) that provides useful information for making economic decisions. Its object of study is assets, the analysis of which is reflected in the so-called accounting statements or financial statements .
Fiscal (from the Latin fiscalis ), on the other hand, is what belongs to or relates to the treasury. This term is linked to the public treasury or the set of public organizations in charge of collecting taxes.
The information system related to tax obligations is known as tax accounting . This type of accounting is based on the tax regulations established by the law of each country and includes the recording of operations for the presentation of declarations and the payment of taxes .
Tax accounting vs. financial accounting
Tax accounting can differ from financial accounting (which records the activity and transactions of a company in a given period). In some countries, accounting laws require reporting every twelve months, giving rise to the fiscal year .
If reports are due on July 1 , the fiscal year will extend between that day and the following June 30 . This difference with the usual calendar means that there are various types of accounting information in a company. For example, a company may have earned one million dollars in 2007 from its operations , but lost two million in the fiscal year that began on the same date.
Tax accounting is based on the registration of operations for the payment of taxes and the presentation of the corresponding declarations.
The importance of regulations
It is worth mentioning that this information system known as tax accounting has a direct relationship with tax regulations, which is why it is potentially different in each country, according to its current legislation. Regardless of these differences, knowing tax accounting is extremely important for any company or individual entrepreneur.
The tax payment obligations that every company has, whether it is made up of one or a hundred people, are periodic and immutable and, although the most common thing is that all the procedures related to them are delegated to a manager or advisor, the The success of any business depends largely on the awareness that managers have of this matter, both of obligations and tax rights.
When the liability that a company has towards third parties is unlimited, the importance of knowing its tax accounting is even greater, since poor management of it could affect its assets .
Tax accounting in different countries
* Spain : The Tax Agency is responsible for collecting taxes related to business and professional activity. The rest of the cases are usually handled by the City Council of the town in which the company is based;
* Chile : Tax collection is carried out through the Internal Revenue Service . On its website it is possible to obtain specific information for companies of different sizes;
* Mexico : All issues related to the payment of taxes must be processed through the Tax Administration System , which provides all the necessary data to maintain a business in order;
* Argentina : The body in charge of applying, collecting and supervising taxes at the national level, according to current legislation, is the General Tax Directorate, a body that is part of the Federal Administration of Public Revenues ;
* Colombia : The National Tax and Customs Directorate deals with all issues related to taxes and its portal offers information and guides to stay up to date on tax obligations;
* Panama : For all the management of tax issues in the country there is the General Directorate of Revenue , which depends on the Ministry of Economy and Finance.