What Is Deferred Corporate Income Tax Income?
Under Part B of Appendix II of Circular No. 99/2025/TT-BTC, regarding Account 821 – Corporate Income Tax Expense, deferred corporate income tax income is defined as an amount that reduces deferred corporate income tax expense recognized by the enterprise.
This income arises when the enterprise:
- Recognizes deferred tax assets during the year;
- Reverses deferred tax liabilities that were recognized in previous years.
Conversely, deferred corporate income tax expense refers to the amount of corporate income tax that the enterprise is expected to pay in the future, arising from the following circumstances:
- Recognizing deferred tax liabilities during the year;
- Reversing deferred tax assets that were recognized in previous years.
How to Account for Deferred Corporate Income Tax Expense under Circular 99?
According to Part B of Appendix II of Circular No. 99/2025/TT-BTC, the accounting treatment for Account 821 – Corporate Income Tax Expense, including Account 8212 – Deferred Corporate Income Tax Expense, is carried out based on the following principles:
Debit Side of Account 8212
The Debit side reflects items that increase deferred corporate income tax expense, including:
- Deferred corporate income tax expense arising during the year from the recognition of deferred tax liabilities. The amount recognized is the difference between deferred tax liabilities arising during the year and deferred tax liabilities reversed during the year;
- Reversal of deferred tax assets that were recognized in previous years. The amount recognized is the difference between deferred tax assets reversed during the year and deferred tax assets arising during the year;
- Transfer of the difference when the amount arising on the Credit side of Account 8212 is greater than the amount arising on the Debit side of Account 8212 during the period. This difference is transferred to the Credit side of Account 911 – Determination of Business Results.
Credit Side of Account 8212
The Credit side reflects items that decrease deferred corporate income tax expense, including:
- Reduction of deferred corporate income tax expense corresponding to the recognition of deferred tax assets. The amount recognized is the difference between deferred tax assets arising during the year and deferred tax assets reversed during the year;
- Reduction of deferred corporate income tax expense corresponding to the reversal of deferred tax liabilities. The amount recognized is the difference between deferred tax liabilities reversed during the year and deferred tax liabilities arising during the year;
- Transfer of the difference when the amount arising on the Credit side of Account 8212 is less than the amount arising on the Debit side of Account 8212 during the period. This difference is transferred to the Debit side of Account 911 – Determination of Business Results.
Note: Under Circular No. 99/2025/TT-BTC, Account 8212 – Deferred Corporate Income Tax Expense has no ending balance.
