Practical Accounting 1 Deferred Income Tax

• 1. If Financial Income>Financial Taxable Income=future taxable amount x tax rate
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•     ☝Deferred Tax Liability

2. If Taxable Income > Financial Income=deductible temporary difference

☝Deferred Tax Asset⇢Income Tax Benefit


3. Taxable Income x Tax Rate=Current Tax Expense

4. Financial Income x Tax Rate=Total Income Tax

5. CV of Asset is higher than tax base the difference is future taxable amount (DTL)

6. CV of liability is higher than the tax base = the difference is future deferred tax asset

1. Insurance Premium on life of an officer/company benefit

2. Penalty Payment