What is tax accounting?

The term accounting It is a concept that refers to the techniques used to record the financial transactions of a person or company. Tax accounting is one of the existing types of accounting.

When we talk about tax accounting, we refer to all those actions and tasks related to tax obligations that are defined by the tax regulations of each country. A task that is normally carried out by advisors, managers or accountants.

Tax accounting therefore focuses on taxation and payment of impuestos and in the justification of the patrimonial and financial movements of a natural or legal person.

Aspects to take into account in tax accounting

When carrying out tax accounting, the following aspects should be taken into account.

Tax legislation

The tax regulations established in the various tax laws are different for each country. Furthermore, and in the case of Spain, there are in many cases differences between different autonomous communities. Especially in those fiscal powers that are attributed to the autonomies as in the case of the income statement or the inheritance and gift tax.

Tax Agency

The State Agency for Tax Administration, better known by its acronym AEAT, is the body responsible for collecting taxes. It is also in charge of carrying out the pertinent inspections. Carried out in order to verify mandatory transaction records and compliance with tax regulations. Both in individuals and in companies.

Taxes and Taxes

The various records of operations created based on tax criteria will result in the tax bases. The calculations established by tax regulations will be made on them. These calculations will result in the fee to be paid to the AEAT as a tribute or tax.

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