On 12 October 2026, the Chamber of Tax Advisers submitted comments to the Ministry of Finance on the comprehensive amending proposal to the Income Tax Act, which accompanies the new Accounting Act. The new Accounting Act, effective from 2026, introduces significant changes to financial reporting standards, necessitating corresponding adjustments in tax legislation. The Chamber’s comments focus on the alignment of taxable profit calculation with the new accounting rules, particularly regarding valuation methods, provisions, and revenue recognition.
Key Takeaways
- Accounting-Tax Alignment: The Chamber highlights discrepancies between accounting and tax treatment of financial instruments under the new standards, urging harmonization to avoid double taxation or unintended deferrals.
- Transitional Provisions: Comments propose transitional provisions to smooth the shift for taxpayers adopting the new accounting framework, including guidance on opening balance sheet adjustments.
- Revaluation Reserves: The Chamber urges clarification on the tax treatment of revaluation reserves and deferred tax assets under the new regime to provide legal certainty for financial institutions and large corporates.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement