Total tax expense comprises current and deferred tax, and the notes present a reconciliation between the statutory and effective tax rates. In Turkey, tax-basis inflation adjustment and incentives are the main factors complicating deferred tax calculations.
Source: TMS 12
Related terms
Deferred taxTax payable or recoverable in future periods, calculated on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.Inflation adjustment (tax)An adjustment made under tax legislation, when certain conditions are met, to remove the effects of price changes from the financial statements.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: November 8, 2026 · This definition is for general information only.