As of 28 August 2026, the Ministry of Finance updated the methodological recommendations for calculating tax differences under IAS 12 / UASB 12, incorporating amendments to the Tax Code effective 1 January 2026 (Law No. 4015-IX). The update addresses the recognition of deferred tax assets and liabilities arising from temporary differences between the carrying amount of assets/liabilities in financial statements and their tax bases. Key changes include the treatment of war-related losses, revaluation of fixed assets under martial law, and the non-deductibility of certain provisions for tax purposes.
Key Takeaways
- War Loss Carryforward: Losses incurred in 2022-2025 due to military aggression may be carried forward indefinitely for corporate profit tax, creating significant deferred tax assets requiring recognition.
- Revaluation Impact: Revaluation surpluses recognized under martial law provisions create taxable temporary differences; deferred tax liability must be recognized at the 18% corporate tax rate.
- Provision Non-Deductibility: Provisions for warranties, restructuring, and legal claims remain non-deductible for tax purposes, generating permanent differences that increase effective tax rate.
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