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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Summary of income tax expense | Income tax expense consist of the following:
|  | Year ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |
Current income tax expense: |  |  |  |  |  |  |  |  |  |  |  |
PRC |  |  | 80,548 |  |  |  | 111,552 |  |  |  | 168,924 |
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
PRC |  |  | 81,099 |  |  |  | (17,637 | ) |  |  | (131,917 | )
Total income tax expense |  |  | 161,647 |  |  |  | 93,915 |  |  |  | 37,007 |
Summary of significant components of deferred tax assets and deferred tax liabilities | The following table sets forth the significant components of the deferred tax assets and deferred tax liabilities:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |
Deferred tax assets |  |  |  |  |  |  |  |
Payroll and welfare payable |  |  | 16,880 |  |  |  | 12,131 |
Accrued expenses |  |  | 20,462 |  |  |  | 16,199 |
Allowance for uncollectible receivables and contract assets |  |  | 101,048 |  |  |  | 37,932 |
Liabilities from the investor assurance program |  |  | 306,655 |  |  |  | — |
Net loss carryforward |  |  | 576,810 |  |  |  | 13,595 |
Liabilities related to customer incentive |  |  | 23,423 |  |  |  | 44,216 |
Gross deferred tax assets |  |  | 1,045,278 |  |  |  | 124,073 |
Valuation allowances |  |  | (619,533 | ) |  |  | (1,909 | )
Net deferred tax assets |  |  | 425,745 |  |  |  | 122,164 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Uncollected revenues |  |  | (369,718 | ) |  |  | (53,872 | )
Total deferred tax liabilities |  |  | (369,718 | ) |  |  | (53,872 | )
Net deferred tax assets (after offsetting) |  |  | 56,027 |  |  |  | 68,292 |
Summary of reconciliations of differences between prc statutory income tax rate and group's effective income tax rate | Reconciliations of the differences between PRC statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2017, 2018 and 2019 are as follows:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |
Statutory income tax rate |  |  | 25.00 | % |  |  | 25.00 | % |  |  | 25.00 | %
Non-deductible expense |  |  | 2.57 | % |  |  | 2.62 | % |  |  | 6.66 | %
Research and Development expense super deduction |  |  | (0.31 | %) |  |  | (1.44 | %) |  |  | (2.97 | %)
Effect of tax holiday |  |  | (4.24 | %) |  |  | (12.87 | %) |  |  | (18.86 | %)
Different tax rate of entities operating in other jurisdiction |  |  | 0.00 | % |  |  | 0.00 | % |  |  | (0.07 | %)
Valuation allowance |  |  | 0.00 | % |  |  | 0.00 | % |  |  | 0.32 | %
Change in tax rate |  |  | 0.79 | % |  |  | 0.00 | % |  |  | (3.13 | %)
True up |  |  | 0.00 | % |  |  | 0.00 | % |  |  | (0.40 | % )
Effective tax rate |  |  | 23.81 | % |  |  | 13.31 | % |  |  | 6.55 | %
Summary of effect of tax holiday | The effect of the tax holiday on the income per share is as follows:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |
Tax saving amount due to HNTE status |  |  | 29,739 |  |  |  | 90,819 |  |  |  | 106,516 |
Tax saving amount due to other jurisdiction |  |  | — |  |  |  | — |  |  |  | (411 | )
Income per share effect-basic and diluted |  |  | 0.15 |  |  |  | 0.45 |  |  |  | 0.52 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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