ICAEW.com works better with JavaScript enabled.

IAS 12 Income Taxes

IAS 12 Income Taxes prescribes the accounting treatment for income taxes, including how to account for the current and future tax consequences of assets, liabilities and transactions recognised in the financial statements.

Published October 1996. Effective 1 January 1998.

Become a Financial Reporting Faculty member

Find out more about the benefits of membership and joining details.

Join now


Free to view

Financial Reporting Faculty members only


  • Current tax for the current and prior periods is recognised as a liability to the extent that it remains outstanding, or an asset, to the extent that amounts paid are in excess of that due. It should be recognised using the tax rates that have been enacted or substantively enacted by the reporting date.
  • Deferred tax liabilities are recognised for taxable temporary differences
  • Deferred tax assets are recognised for deductible temporary differences and unused tax losses and credits to the extent that a taxable profit will be available against which they can be utilised.
  • Deferred tax assets and liabilities should be measured at the tax rates expected to apply to the date when the liability is settled or asset realised.

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

Which version of the standard?

Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.

Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.

Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

The following interpretations refer to IAS 12

Other resources


Financial Reporting Council

  • Thematic review: Deferred taxes
    FRC review published in September 2022. It discusses recognition of deferred tax assets, disclosure of recognised and unrecognised deferred tax assets, judgements and estimates, presentation and other disclosures, and key expectations. An appendix gives examples of positive and negative evidence relevant to assessing the probability of future taxable profits.

This page was last updated 30 August 2022.

How standards trackers work

Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via IFRS Standards Navigator.

ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.