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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Summary of income tax expense | Income tax expense consists of the following:
|  | Year ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
|  | RMB |  |  | RMB |  |  | RMB |
Current income tax expense: |  |  | 111,552 |  |  |  | 168,924 |  |  |  | 83,216 |
Deferred income tax (benefit) expense: |  |  | (17,637 | ) |  |  | (131,917 | ) |  |  | 25,595 |
Total income tax expense |  |  | 93,915 |  |  |  | 37,007 |  |  |  | 108,811 |
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:
|  | As of December 31, |
|  | 2019 |  |  | 2020 |
|  | RMB |  |  | RMB |
Deferred tax assets |  |  |  |  |  |  |  |
Payroll and welfare payable |  |  | 12,131 |  |  |  | 11,635 |
Accrued expenses |  |  | 16,199 |  |  |  | 10,198 |
Allowance for uncollectible receivables, contract assets, loans receivable and others |  |  | 37,932 |  |  |  | 56,164 |
Net loss carryforward |  |  | 13,595 |  |  |  | 13,495 |
Liabilities related to customer incentive |  |  | 44,216 |  |  |  | 11,435 |
Gross deferred tax assets |  |  | 124,073 |  |  |  | 102,927 |
Valuation allowances |  |  | (1,909 | ) |  |  | (4,102 | )
Net deferred tax assets |  |  | 122,164 |  |  |  | 98,825 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Uncollected revenues |  |  | (53,872 | ) |  |  | (57,890 | )
Total deferred tax liabilities |  |  | (53,872 | ) |  |  | (57,890 | )
Deferred tax assets, net |  |  | 68,292 |  |  |  | 40,935 |
Summary of changes in valuation allowance | Changes in valuation allowance are as follows:
|  | Year Ended December 31, |
|  | 2020 |
|  | RMB |
Balance at beginning of the year |  |  | (1,909 | )
Additions |  |  | (2,871 | )
Reversals |  |  | 678 |
Balance at end of the year |  |  | (4,102 | )
Summary of reconciliations of differences between PRC statutory income tax rate and group's effective income tax rate |
10. | INCOME TAXES – continued
Reconciliations of the differences between PRC statutory income tax rate and the Company’s effective income tax rate for the years ended December 31, 2018, 2019 and 2020 are as follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
|  | RMB |  |  | RMB |  |  | RMB |
Statutory income tax rate |  |  | 25.00 | % |  |  | 25.00 | % |  |  | 25.00 | %
Non-deductible expense |  |  | 2.62 | % |  |  | 6.66 | % |  |  | 2.54 | %
Research and Development expense super deduction |  |  | (1.44 | %) |  |  | (2.97 | %) |  |  | (0.62 | %)
Effect of tax holiday |  |  | (12.87 | %) |  |  | (18.86 | %) |  |  | (2.12 | %)
Different tax rate of entities operating in other jurisdiction |  |  | 0.00 | % |  |  | (0.07 | %) |  |  | 4.86 | %
Valuation allowance |  |  | 0.00 | % |  |  | 0.32 | % |  |  | 0.61 | %
Change in tax rate |  |  | 0.00 | % |  |  | (3.13 | %) |  |  | 0.00 | %
True up |  |  | 0.00 | % |  |  | (0.40 | %) |  |  | 0.05 | %
Effective tax rate |  |  | 13.31 | % |  |  | 6.55 | % |  |  | 30.32 | %
Summary of effect of tax holiday | The effect of the tax holiday on the income per share is as follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
|  | RMB |  |  | RMB |  |  | RMB |
Tax saving amount due to HNTE status |  |  | 90,819 |  |  |  | 106,516 |  |  |  | — |
Tax saving amount due to Software enterprise |  |  | — |  |  |  | — |  |  |  | 7,527 |
Tax expense amount due to other jurisdiction |  |  | — |  |  |  | (411 | ) |  |  | (17,405 | )
Income per share effect-basic and diluted |  |  | 0.45 |  |  |  | 0.50 |  |  |  | (0.05 | )

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