The Local Permanent Differences page allows you to enter differences between National Taxable Income and Local Taxable Income that are permanent in nature; i.e., these differences do not reverse in the future. Because permanent differences often flow from the national calculation, only the difference between the national and local amounts for a permanent difference is entered on the Local Permanent Differences 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 -10,000.
Enter a separate line item for each Local Permanent Difference:
| 1. | Select the appropriate code-description from the drop-down menu in first column. |
| 2. | Select the type of the permanent difference item. It is usually a P&L adjustment. However, if you are entering an item that does not have any impact on the current tax expense (e.g.., stock option expense), select E - Equity adjustment. Refer to the Where to Enter Items in ONESOURCE Tax Provision section for more information on the types of permanent difference items. |
| 3. | Enter the amount in local currency. |
| 4. | Click Add New to create the permanent difference. |
Note: If a new permanent difference item is required, contact the Corporate Tax Department.
After a permanent difference item is created, you can edit or delete the item by clicking the appropriate icon. Click the pencil icon to edit the entry. Select Save Changes after making any changes. You can attach files to an individual permanent difference items on this page. If you have supporting documents, click the paper clip icon next to the item.
The impact of individual permanent differences on your tax provision can be viewed on the Local Tax Provision report.