ICAI Issues Exposure Draft of International Tax Reform – Pillar Two Model Rules | Amendments to Ind AS 12/AS 22

ICAI has issued an exposure draft of International Tax Reform-Pillar Two Model Rules for amending Ind AS 12, Income Taxes, and AS 22, Accounting for Taxes on Income. New additions under both these standards will be applicable from annual reporting periods beginning on or after 1 April 2023. With these amendments, both standards will cover taxes on income arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD).

However, as an exception to the requirements of both standards, an enterprise should neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.

Moreover, an entity is not required to disclose the information required by newly added paragraphs for any interim period ending on or before 31 March 2024.

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