Account Information

Account Type Statement of Financial Position
Normal Balance Credit

Definition

Income tax owed by the company for the current financial year

Common Journal Entries

Accrue income tax

Dr. Income Tax Expense
Cr. Income Tax Payable

Pay income tax

Dr. Income Tax Payable
Cr. Bank Account

Pay income tax installment

Dr. Income Tax Payable
Cr. Bank Account

Adjust income tax after tax audit

Dr. Income Tax Expense
Cr. Income Tax Payable

Accrue income tax

Dr. Income Tax Expense
Cr. Income Tax Payable

Pay income tax

Dr. Income Tax Payable
Cr. Bank Account

Pay income tax installment

Dr. Income Tax Payable
Cr. Bank Account

Adjust income tax after tax audit

Dr. Income Tax Expense
Cr. Income Tax Payable

International Accounting Standards

IFRS IAS 12 Income Taxes

Current tax measured at amount expected to be paid using rates enacted by reporting date.

US GAAP ASC 740 Income Taxes

Similar current tax measurement. Uncertain tax positions require recognition threshold analysis.