What is deferred tax in SAP SBO - SAP Business One?

SAP Term: deferred tax

• Component: SBO

• Component Name: SAP Business One

• Description: A tax that is due at the time of payment. This tax relates to the following countries: Costa Rica, France, Guatemala, Italy, Mexico, South Africa, and Spain.

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• Key Concepts: 
  Deferred tax is an accounting concept used in SAP Business One (SBO) to recognize the effect of taxes on a company’s financial statements. It is based on the principle that taxes should be recognized in the period in which they are incurred, rather than when they are paid. Deferred tax is calculated by taking into account the difference between the current tax rate and the expected future tax rate. 
  
  How to use it: 
  In SBO, deferred tax is calculated by taking into account the difference between the current tax rate and the expected future tax rate. This calculation is done by subtracting the current tax rate from the expected future tax rate and then multiplying this difference by the taxable income for that period. The resulting amount is then added to or subtracted from the company’s net income, depending on whether it is a positive or negative amount. 
  
  Tips & Tricks: 
  When calculating deferred tax, it is important to remember that it should be calculated for each period separately. This means that if there are changes in the expected future tax rate, these should be taken into account when calculating deferred tax for each period. Additionally, it is important to remember that deferred tax should only be calculated for taxable income and not for non-taxable income. 
  
  Related Information: 
  Deferred tax can be a complex concept to understand, but it is an important part of accounting in SBO. For more information on deferred tax and other accounting concepts in SBO, please refer to SAP’s official documentation or contact a qualified accountant.