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ACCOUNTS
II. Functioning of accounts
Class 6. Expenses

69. Employee profit-sharing -
Income taxes and similar taxes

 

Account 691 " Employee profit-sharing " is used as follows.

The profit-sharing is credited to account 4284 " Accrued employee profit-sharing " by debiting account 691 " Employee profit-sharing " at the end of the financial year in which it is earned.

When the amount of the profit-sharing has been approved by the annual general meeting, or on the date of validity of the profit-sharing agreement, if this is later than the date of the annual general meeting, the debt payable to employees is recorded as a special reserve to the credit of account 424 " Employee profit-sharing ":

  • either by debiting account 428 " Employees - Accrued expenses and accrued income ". The necessary postings are therefore made by debiting or crediting a particular subdivision of account 691,

  • or by debiting account 691 for the total amount of the profit-sharing, when the accrued employee profit-sharing for the previous year has been reversed.

Account 695 " Income taxes " records as a debit the amount due for taxable profits in France and in foreign countries. Subdivisions may be used to identify taxes claimed and tax refunds relating to taxable profits from previous financial years.

Account 696 " Additional contribution to corporate income tax due on dividends paid out " records the additional corporate income tax due on dividends paid out.

Account 698 " Tax consolidation " records income or expenses relating to the tax consolidation regime. Expenses are recorded in account 6981 " Tax consolidation - Expenses " and income in account 6989 " Tax consolidation - Income ".

The credit to account 699 " Income - Carry-back of losses " records the income from the carry-back of losses.

 

 
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