Article 27 (Temporary investment tax credit).

Article 27 (temporary investment tax credit).

Article 27 of TERCL (Temporary investment tax credit)

Article 27 of TERCL (temporary investment tax credit)

TAX RESERVES, TAX EXEMPTION AND TAX CREDIT(27)

Article 5 (Special tax credit for SMEs),

Article 5 (special tax credit for SMEs),

Article 9 (Tax credit for technology and manpower development expenses),

Article 9 (tax credit for technology and manpower development expenses),

Article 9 of TERCL (Tax credit for technology and manpower development expenses)

Article 9 of TERCL (tax credit for technology and manpower development expenses)

Article 25 (Tax credit for investment in facilities for increasing productivity),

Article 25 (tax credit for investment in facilities for increasing productivity),

Article 25 of TERCL (Tax credit for investment in facilities for increasing productivity)

Article 25 of TERCL (tax credit for investment in facilities for increasing productivity)

Interest paid on mortgage refers to the total gross amount, before deducting any tax credit or tax allowance, of mortgage interest on the main residence of the household during the income reference period.

TAX RESERVES, TAX EXEMPTION AND TAX CREDIT

the carryforward of unused tax credits.

Unused tax losses and unused tax credits

in respect of each type of temporary difference, unused tax losses and unused tax credits:

in respect of each type of temporary difference, and in respect of each type of unused tax losses and unused tax credits:

However, this Standard does deal with the accounting for temporary differences that may arise from such grants or investment tax credits.

whether it is probable that the enterprise will have taxable profits before the unused tax losses or unused tax credits expire;

An enterprise considers the following criteria in assessing the probability that taxable profit will be available against which the unused tax losses or unused tax credits can be utilised:

Therefore, when an enterprise has a history of recent losses, the enterprise recognises a deferred tax asset arising from unused tax losses or tax credits only to the extent that the enterprise has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilised by the enterprise.

To the extent that it is not probable that taxable profit will be available against which the unused tax losses or unused tax credits can be utilised, the deferred tax asset is not recognised.

the amount (and expiry date, if any) of deductible temporary differences, unused tax losses, and unused tax credits for which no deferred tax asset is recognised in the balance sheet;

the amount of the benefit from a previously unrecognised tax loss, tax credit or temporary difference of a prior period that is used to reduce deferred tax expense;

This Standard does not deal with the methods of accounting for government grants (see IAS 20, accounting for government grants and disclosure of government assistance) or investment tax credits.

the amount of the benefit arising from a previously unrecognised tax loss, tax credit or temporary difference of a prior period that is used to reduce current tax expense;

The criteria for recognising deferred tax assets arising from the carryforward of unused tax losses and tax credits are the same as the criteria for recognising deferred tax assets arising from deductible temporary differences.

whether the enterprise has sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity, which will result in taxable amounts against which the unused tax losses or unused tax credits can be utilised before they expire;

whether tax planning opportunities (see paragraph 30) are available to the enterprise that will create taxable profit in the period in which the unused tax losses or unused tax credits can be utilised.

This Standard also deals with the recognition of deferred tax assets arising from unused tax losses or unused tax credits, the presentation of income taxes in the financial statements and the disclosure of information relating to income taxes.

Tax planning opportunities are actions that the enterprise would take in order to create or increase taxable income in a particular period before the expiry of a tax loss or tax credit carryforward.

A deferred tax asset should be recognised for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.

Where tax planning opportunities advance taxable profit from a later period to an earlier period, the utilisation of a tax loss or tax credit carryforward still depends on the existence of future taxable profit from sources other than future originating temporary differences.