Corporation tax, often abbreviated to VPB, is a form of profit tax. You pay this tax once a year based on the profits from your business. It is a business tax that has nothing to do with your private information.
After you calculate how much corporation tax (VPB) you will pay, there comes a time when you remit it. But how do you process this in the accounts? Here's how it works:
- Update the financial account so it will show the transaction to the Belastingdienst.
- Connect the transaction to the balance category called "Te betalen vennootschapsbelasting".
Your balance report now shows the category 'Te betalen vennootschapsbelasting' with a negative amount, a minus amount. You'll find this category on the credit side, so the right side, under "Kortlopende schulden".
The amount has to disappear from there again because it has already been paid. That's quickly taken care of with a simple memorandum booking that gets your VPB processed correctly:
- Create a new memorandum booking of type 'other' and, for example, use 'VPB 2022' as the title.
- Set the book date of the memorandum booking to the date of the transaction in your financial account.
- Add two items to the memorandum booking and set it up as follows:
- The first item will have the result category "Vennootschapsbelasting". Enter the total of the declaration on the debit side.
- The second item gets the balance category "Te betalen vennootschapsbelasting". Enter the total of the declaration on the credit side.
- Check to see if the booking is balanced with the control numbers at the bottom. They should both be equal.
- Save the memorandum booking.
And that is all. The transaction is connected and the amount is correctly processed in your results and balance sheet. In your balance report you no longer see the category "Te betalen vennootschapsbelasting", because it has returned to zero. In your results report of this fiscal year you will see the category "Vennootschapsbelasting" with the amount you transferred. Therefore, those charges are always on the VPB of the previous fiscal year.