Income Tax and Deferred Tax (Section 29 / IAS 12)

Overview

Both Section 29 and IAS 12 use the temporary-differences approach: deferred tax arises on differences between the carrying amount of an asset or liability and its tax base. The system computes current tax and deferred tax per book per period, recognises them through P&L (or OCI / equity as required), and discloses the tax-rate reconciliation.

Required first reads

• doctrine/accounting-finance-doctrine.md
• doctrine/references/ifrs-for-smes-default.md (Section 29)
• doctrine/references/full-ifrs-overlay.md (IAS 12)
• doctrine/references/live-rate-verification-protocol.md (tax rates)
• doctrine/references/chart-of-accounts.md

Current tax

Current tax is the amount payable (or recoverable) for the period based on taxable profit (loss) using tax rates enacted or substantively enacted by the reporting date. The system computes: