Current and deferred income tax in the era of the COVID-19 pandemic in the light of the financial statements of WIG30 companies

Abstract

Purpose: The article shows the impact of the COVID-19 pandemic on the amount of income tax expense (including current and deferred tax).Methodology/approach: The legal status of income tax in accounting is presented, taking into account issues that should be applied in the pandemic era. An empirical study was carried out based on the content analysis of financial statements for 20192021 of entities included in the WIG30.Findings: The pandemic mainly reduced income tax expense while increasing deferred tax assets, after meeting certain conditions, primarily due to tax losses.Originality/value: The article shows the impact of the pandemic on the amount of income tax expense (including current and deferred tax), an area not yet explored. The starting point for future scientific research shows the impact of the pandemic based on another (larger) research sample.

Keywords

• current income tax
• deferred income tax
• financial statements
• IAS 12