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In the Local Actual Permanent Diffs page, users can enter differences between National Taxable Income and Local Taxable Income that are permanent in nature; the differences do not reverse in the future. Because permanent differences often flow from the national calculation, only the difference between the national amount and local amounts for a permanent difference is entered on the Local Actual Permanent Diffs page. Refer to Scenario 2 on the Local Jurisdiction page of this manual, in which the amount entered for the local permanent difference would be -15,000.
Enter a separate line item for each local actual permanent difference:
| 1. | Select the Code-Description and then Tag or Class/Sub-Class. |
| 2. | Select the type of the permanent difference item. It is usually a P&L adjustment. However, if users are entering an item that does not have any impact on the current tax expense; for example, stock option expense, select E - Equity adjustment. |
| 3. | Enter the amount in local currency. |
| 4. | Click Add New to create the local actual permanent difference. |
After a local actual permanent difference item is created, users can edit or delete the item by clicking the appropriate icon.
| 1. | Click the pencil icon to edit the entry. |
| 2. | Select Save Changes after making any changes. |
| • | Users can attach files to an individual local actual permanent difference item on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item. |
| • | Users have the ability to add and update notes to a line item. Users may click on the notes icon then add notes, as needed. |
| • | The impact of individual local actual permanent difference on the tax provision can be viewed on the Local Interim Provision report. |
Notes:
| • | If a new local local actual permanent difference item is required, contact the Corporate Tax Department. |
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