IAS 12Chapter 13Lesson 1
Pillar Two: top-up tax, mandatory exception and disclosures
Step 1 of 9Learning objectives
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Taxes arising from Pillar Two legislation, including qualified domestic minimum top-up taxes, are income taxes. As a mandatory exception, the entity recognises no deferred tax for them and does not disclose information about that deferred tax. It discloses that it applies the exception, presents current tax related to Pillar Two separately and, as long as enacted legislation is not yet in effect, describes its exposure through qualitative and quantitative information.
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Learning objectives
- Explain the mandatory exception: neither deferred tax nor information about deferred tax related to Pillar Two.
- Identify the Pillar Two disclosures.
- Account for a Pillar Two top-up tax as current tax, with no deferred tax.