Income Tax Payable
A type of account in the current liabilities section of a company's balance sheet. This account is comprised of taxes that must be paid to the government within one year. Income tax payable is calculated according to the prevailing tax law in the company's home country.
This account is usually identified in the balance sheet when the company has received its tax bill but has put off paying it for the time being. The taxes are calculated on the company's net income according to its corporate tax rate. If a company is due to receive a tax benefit from its respective revenue agency, the amount of income tax payable will decrease.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
income tax — n: a tax on the net income of an individual or a business compare excise, property tax Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
Income tax in Australia — Broadly, Australia levies tax on three sources of income for individual taxpayers: personal earnings (for example, salary and wages), business income, and capital gains. Income received by individuals is taxed at progressive rates. Income derived … Wikipedia
income tax — a tax levied on incomes, esp. an annual government tax on personal incomes. [1790 1800] * * * Levy imposed by public authority on the incomes of persons or corporations within its jurisdiction. In nations with an advanced system of private… … Universalium
Income tax in India — The Indian Income Tax department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance.The government of India imposes an income tax on taxable income of individuals, Hindu … Wikipedia
income tax — IT A direct tax on an individual s income. In general, individuals can earn income without paying tax up to a threshold, with subsequent income giving rise to tax liabilities, usually at increasing rates as income increases ( progressive… … Accounting dictionary
income tax — IT A direct tax on an individual s income. In general, individuals can earn income without paying tax up to a threshold, with subsequent income giving rise to tax liabilities, usually at increasing rates as income increases (progressive taxation) … Big dictionary of business and management
Deferred Income Tax — A liability recorded on the balance sheet that results from income already earned and recognized for accounting, but not tax, purposes. Also, differences between tax laws and accounting methods can result in a temporary difference in the amount… … Investment dictionary
Individual income tax in Singapore — forms part of two main sources of Income tax, the other being corporate taxes on companies. Payable on an annual bases, it is currently based on the progressive tax system (for local residents), with taxes ranging from 0% to 20% since Year of… … Wikipedia
higher rate of income tax — In the UK, a rate of income tax that is higher than the basic rate of income tax. For 2005–06 higher rate tax is payable on taxable income, after personal allowances and other allowances, of £32,400 and over. The rate of tax is 40% … Accounting dictionary
higher rate of income tax — A rate of income tax that is higher than the basic rate of income tax For 2005 06 higher rate tax is payable on taxable income, after personal allowances and other allowances, of £32, 400 and over. The rate of tax is 40% … Big dictionary of business and management