CERTYNEX IFRS ACADEMY

A subsidiary of the Astrenor group is subject, in its country, to a qualified domestic minimum top-up tax arising from enacted Pillar Two legislation. The group's tax specialists have computed the top-up tax due for the year (amount given in the case, not yet paid). How should it be treated in the subsidiary's financial statements?

As a provision under the standard on provisions, since the tax is computed under OECD rules.

As a deferred tax liability, since the top-up tax depends on the results of other group entities.

As an operating expense outside income tax, with no effect on tax expense.

As current tax within IAS 12 (a liability for the unpaid part), with no deferred tax related to Pillar Two.