The formation and development of income tax accounting is the inevitable result of the separation between income tax laws and accounting standards. The degree of separation and the types and quantities of differences between them directly affect and determine the improvement of income tax accounting treatment methods. Tax accounting, also known as enterprise tax accounting, refers to a professional accountant who takes tax laws, regulations and accounting system as the basis, takes currency as the unit of measurement, and uses the basic theories and methods of accounting to reflect and supervise the fund movement caused by tax activities of tax payers, so as to safeguard the legitimate rights and interests of the state and taxpayers.

Tax accounting is a special professional accounting that integrates tax system and accounting. There are differences between accounting treatment and tax law treatment, so special tax accounting has emerged, and many enterprises have set up tax accounting posts separately.