Please I need help: I want to create a corporate income tax that will show the tax deducted on the net earnings. I.e: Net Earnings 100,000 CIT @ 25% ( 2,500)

QuickBooks Online does not automatically calculate corporate income tax based on your net earnings. Tax rates, allowable deductions, and tax brackets vary heavily depending on your region and specific business structure.

Once your accountant provides your calculated tax amount, you can record it as a Journal Entry or Expense to ensure your books balance correctly.

At the close of your fiscal year, QuickBooks Online automatically sweeps your final, post-tax Net Income directly into the Retained Earnings account on your Balance Sheet. Because your Income Tax Expense already appropriately reduced your Net Income, your Retained Earnings will carry forward perfectly into the new year. No manual configuration or closing entries are required on your part.

Therefore, it is always best to consult with your accountant to determine the exact tax calculation for your business.

For more information, you can also check this article: View retained earnings account details in QuickBooks.

Please leave a comment below if you require further assistance with QuickBooks.