Dr. Hanne Böckem
Partner, Audit, DPP
KPMG AG Wirtschaftsprüfungsgesellschaft
On 11 April 2023, the International Accounting Standards Board (IASB) decided to finalise IAS 12 Amendments International Tax Reform-Pillar Two Model Rules. The amendments to IAS 12 include temporary mandatory reliefs for the recognition of deferred taxes from the introduction of the Pillar Two Model Rules.
The amendment includes
- a temporary, mandatory exemption from recognising deferred taxes resulting from the introduction of global minimum taxation and
- targeted disclosures in the notes for affected entities to enable users of financial statements to understand the extent to which an entity is affected by minimum taxation, particularly before the legislation comes into force.
The IASB has taken into account feedback from various stakeholders. While almost all stakeholders agreed with the proposed temporary exemption from accounting for deferred tax arising from the introduction of the Pillar Two Model Rules, they had differing views on the extent of information expected from entities in the implementation phase.
The final amendments to IAS 12 Income Taxes are expected to be published by the end of May 2023. The IASB's press release can be downloaded here.