According to Russian tax law, accounting profit or loss and the tax base for tax on profit are created in accordance with various legal provisions and result in both constant and temporary differences.

A constant difference is the accounting profit or loss that is excluded from the tax base for the tax on profit calculation. Some accounting expenses or revenues do not contribute to the creation of the tax base for tax on profit in either the current or subsequent reporting periods. A constant difference is the occurrence of a constant tax liability or constant tax asset.

Temporary differences occur if expenses or revenues create an accounting profit in one reporting period and a taxable base in other reporting periods, resulting in a deferred tax on profit.

Depending on the nature of the impact on taxable profit, temporary differences are classified as deductible or taxable. Therefore, deferred tax on profit is created either as a deferred tax asset or deferred tax duty.

Accounting records must display information about constant and temporary differences in an analytical way. The constant and temporary difference amounts are displayed as: CTA (Constant Tax Asset), CTL (Constant Tax Liability), DTA (Deferred Tax Asset), DTL (Deferred Tax Asset), writing off DTA, and writing off DTL.