Account 4752: outstanding amount of corporation tax to be paid

The General Accounting Plan (PGC), in its section on Recording and Valuation Standards, in section 13, speaks of the account 4752. This is where companies must record the amount of corporate income tax due.

What is the 4752 account?

Account 4752 is one of the accounts included in the PGC, specifically the account for the amount of corporation tax payable.. . . is shown under current liabilities in the balance sheet.

For many business managers, accounting is a challenge. However, it is their duty to keep the company's accounts up to date. To do this, one of the things they need to know is what expenses can be deducted from corporation tax.

What expenses are deductible for corporate tax purposes?

Knowing what they are helps to reduce the rate to be paid by the business and, to do so, it is necessary to pay attention to the applicable regulations.

The current corporate income tax regulations allows deduct from the tax base certain expenses that are necessary for the proper and normal operation of the business. These deductions are intended to encourage business decisions that help to keep the national economy going by investing in certain services or purchasing certain products.

The following are among the expenses deductible for corporate income tax purposes:

Deductions for job creation
Deductions for environmental conservation and improvement
Deductions for investment incentives
Deductions for vocational training expenses
Deductions for research and innovation activities

These are decisions which affect accounting profits but which, thanks to the option to deduct them, offer tax relief to the business. This can be taken advantage of by those who meet certain requirements:

Justify the expenditure. There are companies that, instead of worrying about keeping paper documentation, opt for an automated solution that facilitates their accounting records and serves as a supporting document at the same time. ¿You know Ticket Dietas?
Accounting for expenditure. There will be times when some items will be included in account 4752, others in different headings of the profit and loss account. The important thing is to do it in accordance with the General Accounting Plan.

The allocation of income and expenses on an accrual basis and the incurrence of expenses and investments in the course of business with the objective of earning income are necessary requirements in addition to those mentioned above.

It should be borne in mind that there will be other expenses that are not deductible for corporate income tax purposes, such as fines, penalties, certain donations, dividends, depreciation exceeding certain limits or the corporate income tax expense itself.

After understanding what the 4752 account is and knowing which expenses are deductible and non-deductible for corporate tax purposes, you have no excuse for not keeping your accounts up to date. Now, all you need to do is figure out how to simplify expense management in your company so that you don't overlook a single detail.You know Edenred's solutions?