Audit Files

SCHEDULE TAX

Net profit before tax flows from the Tax Schedule (J1). Add-back amounts flow from the Trial Balance. Edit any value below.

Calculate tax at SBC (Small Business Corporation) ratesUsing standard 27% company rate

TAX COMPUTATION (PER INCOME STATEMENT)

Description

2026

2025

NET PROFIT BEFORE TAX

Add back:

DONATIONS

ASSESSED LOSS B/F

TAXABLE INCOME FOR THE YEAR

SA TAXATION @ 27%

(1.00)

CURRENT SITUATION

TAX LIABILITY

(1.00)

PROVISIONAL TAX 1ST PERIOD

PROVISIONAL TAX 2ND PERIOD

PROVISIONAL TAX 3RD PERIOD (if applicable)

STC

ESTIMATED TAX PAYABLE / (REFUNDABLE)

(1.00)

RECOMMENDED JOURNAL — SA TAXATION @ 27%

DR TAX EXPENSE (IS)

(1.00)

CR TAXATION (BS)

(1.00)

Posts the SA taxation charge for the year: Dr Tax expense / Cr Taxation (liability).

RECOMMENDED JOURNAL — TAXABLE INCOME ADJUSTMENT

BUFFER ADDED TO TARGET TAXABLE INCOME

TAXABLE INCOME (PER COMPUTATION)

TOTAL PROVISIONAL TAX PAID (1ST + 2ND)

TARGET TAXABLE INCOME (PROV ÷ 27% + BUFFER)

DIFFERENCE (TAXABLE LESS TARGET)

JOURNAL AMOUNT (BALANCING ADJUSTMENT)

RECOMMENDED ENTRY

No journal required

Method: Standard 27% company rate. Target taxable income is derived from the provisional tax paid, plus a buffer of R0. The journal amount balances actual taxable income to that target.

If taxable income is too high (above target): Dr Closing Stock / Cr Inventory — reduces closing stock, raises COGS, lowers taxable income.

If taxable income is too low (below target): Dr Inventory / Cr Closing Stock — increases closing stock, lowers COGS, raises taxable income.