Deferred Tax

What is Deferred Tax?

Deferred tax is tax due in the future because of temporary differences between accounting and tax rules.

Think of it like this…

It’s tax you’ll pay (or save) later due to timing differences.

Why does it matter?

• Common in asset depreciation and provisions
• Affects financial statement accuracy
• Important for investor and lender transparency

Best practice

Track differences carefully with your accountant.