Deferred Tax Liability
/dɪˈfɜrd tæk ˈlaɪəbɪlɪti/
Definitions
- (n.) A tax obligation recognized in accounting that arises from temporary differences between the carrying amount of assets or liabilities and their tax bases, payable in future periods.
The company recorded a deferred tax liability due to accelerated depreciation differences.
Forms
- deferred tax liability
- deferred tax liabilities
Related terms
See also
Commentary
Deferred tax liabilities represent future tax payments and should be carefully distinguished from current tax liabilities to ensure accurate financial reporting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.