CTA Tax Service Practice cheat sheet
CTA Tax Service Practice · Keep the key ideas within reach.
Role knowledge and relevant Chinese foundations
Identify the taxpayer, event, base and period.
Distinguish a deduction, credit, exemption and withholding.
Accounting profit and final taxable income can differ.
Match the statutory version and treaty conditions to the actual facts.
Identify the precise service and its authority.
Trace accounting entries to underlying events.
Explain tax adjustments and reconcile schedules.
A preferred result does not replace lawful evidence or professional judgment.
Separate business activity and owner transactions while recording capital and drawings appropriately.
Apply the supplied earning and expense-allocation model rather than cash timing alone.
Prudence requires caution without deliberate bias.
Identify the applicable framework and version before applying detailed recognition rules.
Distinguish changes in estimates, policies and genuine errors.
Debit assets and expenses; credit liabilities, income and capital
Trade discount is deducted before recording; cash discount is recorded on payment
Credit notes issued go to sales returns; credit notes received go to purchases returns
A trial balance proves arithmetical equality, not accuracy
Errors of principle, commission, omission and reversal do not affect trial balance agreement
One-sided postings and addition errors do affect the difference
Corrections are made by journal, not by changing source documents